about taking credit on the parts of machinery

[MEHUL ASHAR]

Respected Sir,

                          Is it necessary to take 100% credit(cenvat+4%import duty) of the parts of the machinery imported or

50% credit can be taken on that parts of the year in which it was purchased & remaining 50% in the next financial year.

[YAGAY and SUN]

Cenvat credit of SAD can be availed 100% in the first year but  credit of CVD will be availed in two installments. i.e. 50% in the first year and 50% in the subsequent year.

AI Summary

Cenvat credit on import duties: SAD credit may be claimed immediately while CVD credit must be spread across two years.
Cenvat credit attributable to Special Additional Duty (SAD) on imported machinery parts can be claimed in full in the year of purchase, whereas credit attributable to Countervailing Duty (CVD) must be availed in two instalments, with half in the year of import and the remaining half in the subsequent year.