about the rule in the central excise rules,2004

[MEHUL ASHAR]

Respected sir,

                          Which is the rule no. in the central Excise Rules,2004 which says that we can take 100% addl.duty of imported machinery charged at 4%, in the same year.

AI Summary

Clarification on Cenvat Credit Rule 4(2)(a): Full credit for 4% duty on imported machinery if cleared within the same year. A user inquired about the rule in the Central Excise Rules, 2004, allowing 100% additional duty credit for imported machinery charged at 4% within the same year. A respondent directed them to the Cenvat Credit Rule, 2004, specifically rule 4(2)(a). This rule states that CENVAT credit on capital goods received in a factory is limited to 50% of the duty paid in the same financial year, unless the goods are cleared within the same year, allowing full credit. Additionally, credit for additional duty under the Customs Tariff Act is granted immediately upon receipt of the goods.