Benefit of Additional Duty and Additional CVD - Cenavt of last year

[Asked by Guest]

Can we claim benefit of Additional Duty and Additional CVD on imported items against service tax payable. Also can we claim cenvat benefit of previous financial year in the current financial year, if it was wrongly ignored, though we were eligble to claim it in the previous year.

[Surender Gupta]

An output service provider is not eligible to avail cenvat credit of Additional CVD [payable u/s 3(5)] of the Customs Tariff Act. However CVD equal to other duties specifed rule 3 of CC Rules, 2004 are eligible for Cenvat Credit. Further, you can avail the credit for the previous period, but in my opinion you should not avail the credit for the previous period beyound one year.

[Madhukar N Hiregange]

Yes the addtionl duty of cusotms (CVD) which is equivalent ot the excise duty is available. However the 4% Special addtional duty is not eligible for service providers but available to the manufacturers only. You can claim the credits for the previous years if taxable services were provided then also and no credit was claimed. Further in relation to capital goods the condition of depreciation not being claimed on the value of service tax being claimed as credit has to be met.

AI Summary

Cenvat credit eligibility: countervailing customs duties equivalent to excise are claimable, but special additional duty is not for service providers.
Cenvat credit is available for customs duties that are functionally equivalent to excise Countervailing Duty, but special additional customs levies that do not mirror excise are not claimable by service providers. Omitted credits from prior periods may be claimed if the taxable service was provided then and no credit was taken, subject to temporal limitation and capital-goods depreciation conditions.