CUSTOMES EDUCATION CESS

[BHARAT PRADHAN]

DEAR SIR, AFTER CUSTOMES NOTIFICATION, DATED 17-03-2012, CAN I CREDIT TAKEN CUSTOMES EDUCATION CESS & SPECIAL ADDITIONAL DUTY OF CUSTOMES (SPL.CVD)., IMPORT TARIFF CODE IS : 76012010, PLEASE ADICE

[sv bhasker]

Sir,

You can not take cenvat credit of Customs education cess and SHE cess from 17.3.2012 onwards as no education cess and SHE cess are paid on CVD portion of the customs duty due to exemption. However, you can take credit of Spl CVD at 4% if you are a manufacturer. If you are a service provider you can not take credit of spl CVD also. 

[YAGAY andSUN]

No you cannot avail the CENVAT credit as rightly stated in the above reply.

AI Summary

CENVAT Credit: Customs Education Cess & SHE Cess Exempt from CVD; SPL CVD Credit Allowed for Manufacturers Only. A query was raised regarding the ability to take CENVAT credit for Customs Education Cess and Special Additional Duty of Customs (SPL CVD) following a notification dated March 17, 2012. The responses clarified that CENVAT credit cannot be taken for Customs Education Cess and SHE Cess from that date, as they are exempted from the CVD portion of customs duty. However, manufacturers can take credit for SPL CVD at 4%, while service providers cannot avail credit for SPL CVD.