Cenvat Credit on Addl.CVD

[Laxmaiah Vanamamula]

Dear sir,

we received raw Material in our Factory in August 2010.Excise Duty, Edu,Cess & Sec.Cess  already taken in Aug,10

but, CVD also there in that Invoice, our Cleark is Not Taken CVD that Period,

Presently can we take that CVD as Cenvat Credit (Last Year Invoice)

Please Reply & Advise me,

Thanking You,

V.Laxmaiah.

  

[YAGAY andSUN]

Yes, you can avail CENVAT credit on CVD now.

[NEERAJ KUMAR, RANCHI]

Yes, you can take this credit, as per the provisions laid in the cenvat credit rules, there is no problem with it. But, in my view you can intimate the concerned Range Office while taking this credit and keep a receivig thereof. However as per law this is not necessary. So you can go ahead.

[sv bhasker]

Sir,

It is not clear how excise duty and CVD co-exist in an invoice. Excise duty is paid on goods manufactured in the country while CVD is paid on imported goods.

[Anupam Tiwari]

Cenvat credit is a beneficial piece of legislation. Credit can be availed as long as it is proved that goods have actually been received in factory and used in or in relation to manufacture of final products. No time limit for availing credit has been provided in CCR,04. Instead word 'immediatly' has been used . The use of verb "may" instead of "shall" in Rule 4(1) of CCR,04  implies that directive to avail credit immeditely is directory in nature  and not as mandatory.

However, advise of Mr. Neeraj Kumar may be followed.

In my view he is referring to 4% Special Addl. duty.

[NEERAJ KUMAR, RANCHI]

I  do agree with Mr Tiwari.

AI Summary

Cenvat credit on countervailing duty can be claimed for received inputs despite delayed claim, with documentary proof advised. Cenvat credit may be availed on additional countervailing duty paid on inputs where goods were received and used in relation to manufacture; the rules contain no strict statutory time limit, and the permissive language indicates a directory expectation. Claimants should preserve proof of receipt and use, verify the nature of duties on invoices, and may inform the range office and retain acknowledgement when taking a delayed credit to address administrative queries.