availment of 4% additional duty on a product which is exempted from payment of excise duty

[Guru Murthy]

Can we avail additinal duty on the product imported which is exempted from payment of basic excise duty. for ex. we are importing Mono acid calcium phosphate under chapter heading 25101090, which is exempted from payment of basic excise duty. but we are paying 4% additional duty. Can we avail this 4% additional duty?

[YAGAY andSUN]

If it is being used in the manufacturing of finished goods then you can avail the CENVAT credit of SAD 4% and if you are removing as such then you can avail the refund from the customs subject to the notification no. 102/2007-Customs as amended time to time.

[Guru Murthy]

Thank you for your reply

AI Summary

CENVAT credit entitlement affirmed for additional customs duty on exempted inputs used in manufacture; refund available if removed as such. If an imported product exempt from basic excise duty is used in the manufacture of finished goods, the importer may avail CENVAT credit of the additional customs duty paid; if the goods are removed as such, the importer may seek a refund under the applicable customs notification, subject to the notification's conditions and amendments.