CENVAT CREDIT

[RAMESH ANANTHAKRISHNAN]

Dear Sir,

 

We are exporting synthetic filaments to the countries listed in Appendix 37C and there by obtaining duty free license under Focus Marketing Scheme. We import the required material under this license without payment of duty. We understand that though there is no import duty is paid at the time of import, we are entitled to avail the Additional duty debited in the license as CENVAT credit as per Customs Notification 93/2009 dated 11.09.2009.

 

Kindly advise whether our understanding is right.

Regards

 

A.RAMESH

[Dilip Darji]

Dear Sir.

It is very clear in the notification that you can very well avail the exemption from payment of additional duty of customs leviable under Section 3, under the scheme.

However, if you have not availed such exemption, and paid duty, you are entitled to CENVAT credit or drawback.

AI Summary

CENVAT credit: entitlement arises if additional customs duty is paid instead of claiming scheme exemption, permitting credit or drawback. The notification permits an exemption from payment of additional customs duty under the Focus Marketing Scheme so that no additional duty is payable when the scheme is properly utilised. If the exemption is not availed and the additional customs duty is paid, the importer may claim CENVAT credit or drawback for the duty paid.