CENVAT CREDIT ON RE-IMPORTED GOODS

[SANJEEV JADHAV]

Ours is Foundry and we have exported our castings to varous customers. Some of the castings has been rejected by our customer and we have brough back the same as re-import. After receipt we will remelt the castings. Our CHA is telling that as per Notf. No. 94/96 - Customs they will prepare BE. They will prepare Bill of entry without showing CVD amount on BE i.e. 0 and they will show CVD and other particulars on challan (/TR-6) only. Please clarify can we get cenvat credit on CVD amount when their is nil duty showing on BE.

[YP SOOD]

The cenvat credit of additional duty leviable under section 3 of the Customs Tariff Act(Called CVD) which is equivalent to the duty of excise specified under clauses (i), (ii), (iii), (iv), (v) (vi) and (via) of the Rule 3 of the  Cenvat Credit Rule, 2004 is admissible only  if supported by the duty paying documents issued by the supplier of goods including “Bill of Entry” in terms of Rule 9 of the Cenvat Credit Rule, 2004. If the amount of CVD, if even paid , is not exhibited  on the documents, credit is not admissible.if the CVD is nil and shown as nil only nil credit (i.e. nothing) is admissible.

[NEERAJ KUMAR, RANCHI]

Dear Sanjeev

Let me know first under which scheme you had made your exports, thereafter I can give you the proper reply.

[SANJEEV JADHAV]

Dear Neeraj,

Thanks for your reply. We have made export under DEPB scheme.

AI Summary

Cenvat credit on countervailing duty requires the bill of entry to show duty; absent such display, credit is not admissible.
Cenvat credit on countervailing duty is admissible only where payment is supported by duty paying documentary evidence, including a Bill of Entry that shows the CVD amount; if the CVD is not exhibited on these documents credit is not admissible and where the Bill of Entry shows CVD as nil no credit arises.