TaxTMI 
TaxTMI 
Cenvat Credit
16 Nov 2010 
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Cenvat credit on special additional duty fully admissible for imported capital goods, allowed on receipt of the goods.
100% Cenvat credit is admissible on Special Additional Duty paid on imported capital goods; the 50% restriction for countervailing duty does not apply. As SAD is levied under sub section 5 of Section 3 of the Customs Tariff Act, the proviso to Sub Rule 2(a) of Rule 4 of the Cenvat Credit Rules, 2004 permits immediate credit of the additional duty on receipt of the capital goods in the manufacturer's factory. (AI Summary)
100% Cenvat credit is admissible on Special Additional Duty paid on imported capital goods; the 50% restriction for countervailing duty does not apply. As SAD is levied under sub section 5 of Section 3 of the Customs Tariff Act, the proviso to Sub Rule 2(a) of Rule 4 of the Cenvat Credit Rules, 2004 permits immediate credit of the additional duty on receipt of the capital goods in the manufacturer's factory. (AI Summary)
Sir, My question is on Imported Capital Gooods Special Additional duty 4%, how much credit is eligible 50 percent or 100 percent ?