TaxTMI 
TaxTMI 
Availment of Cenvat credit
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....vailment of Cenvat credit<br> Query (Issue) Started By: - mrk fast Dated:- 14-7-2008 Last Reply Date:- 25-9-2009 Central Excise<br>Got 2 Replies<br>Central Excise<br>X company received inputs from Y c....
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....ompany[100%EOU]and took cenvat credit of CVD [BED-14%]and Education Cess and SHE Cess. But some of the manufacturers say that X company can avail Cenvat credit as per the formula mentioned in Rule 3(7....
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....) of the Cenvat Credit Rules i.e X multiplied by [(1+BCD/400) Multiplied by (CVD/100)] and no credit on Education cess or SHE cess is allowed as Cenvat credit eventhough the 100% EOU has paid the same....
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..... I request the members of the forum to give their opinion on this matter. Reply By Surender Gupta: The Reply: The formula given in the rule 3(7) is in line with exemption notifications and applicab....
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....le to basic excise duty only. Therefore despite the fact that there is no reference to education cess in the rule 3(7), X can avail the credit of education cess paid by Y (an EOU), and moreover, witho....
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....ut applying any formula. Reply By R.S. Mangal: The Reply: the credit is to be taken as per the formula mentioned in Rule 3(7) of the Cenvat Credit Rules. however there are tribunal decisions holding....
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.... that credit of EC and HEC can be taken in full.<br> Discussion Forum - Knowledge Sharing ....