Whether ADD CVD be taken as CENVAT

[Rabindra Mohanty]

Dear Sir

How can I treat in books of account when found a invoice with (value+ED/CVD Value+Ed Cess Value+H. Sec. ED. Cess+ADD CVD in case of manufacturing company purchasing capital goods.

 

Plz suggest me.

[Surender Gupta]

A manufacturer is eligible to take cenvat credit of CVD (additional duty equal to central excise) and SAD equal to 4%  where the goods are used as inputs or capital goods.

[YAGAY and SUN]

Further, on CVD & ON Cess you will get 50% CENVAT credit but on SAD @ 4% you will get full CENVAT credit in the first year itself.

AI Summary

Cenvat credit for CVD is available to manufacturers on inputs and capital goods, with differing treatment for cesses.
Whether Additional Duty of Customs (CVD) qualifies for Cenvat credit on invoices for capital goods and inputs: one practitioner asserts manufacturers may claim Cenvat credit of CVD and SAD when goods are used as inputs or capital goods; another advises that credit on CVD and excise cesses may be partially available while SAD is available in full in the initial accounting period.