Cenvat credit availability of CVD portion in Custom cess 2% and Custom SHE Cess 1%

[Yatin Bhopi]

Dear all

We are manufacturer. We procure our raw material through import. In bill of entry there is Custom duty @5%, CVD @ 12%, Custom cess @2%, Custom SHE Cess@1% and Addl. Duty @4%. From this duties We avail Cenvat on CVD @12% and Addl. Duty @4% my query is: Can we avail Cenvat credit on CVD portion in Custom Cess (2%) and SHE Cess (1%). Please express your views.

[issac m]

My view is we can avail the cess and sh.cess

[Sanjay Sharma]

Dear, Ed.Cess on CVD & SHE. Cess on CVD is exempted now, no question of credit availment of the same. Regards, Sanjay Sharma

[YAGAY andSUN]

CESS on CVD has been exempted and Cess on Customs duty would not be available for credit.

[Ramanujam Varadarajan]

Cenvat credit is entitled only on CVD, Cess on CVD or SAD (except for service providers).  Cess on CVD has been removed for imports from last year.  The Customs cess or Customs SHE cess is not eligible for Cenvat credit.

AI Summary

Cenvat credit exclusion: customs cess and SHE cess are not eligible while credit is confined to CVD and additional duty. Cenvat credit is available on Countervailing Duty and Additional Duty but not on Customs cess or Customs SHE cess; respondents further note that the cess on CVD has been exempted or removed for imports, and cess amounts are not eligible for Cenvat credit.