TaxTMI 
TaxTMI 
TaxTMI 
CENVAT Credit on CVD - Imports
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....ENVAT Credit on CVD - Imports<br> Query (Issue) Started By: - Ganeshan Kalyani Dated:- 17-3-2016 Last Reply Date:- 18-3-2016 Customs - Exim - SEZ<br>Got 6 Replies<br>Customs<br>Dear Experts, With reference to Notification No. 1/2016-Central Excise (N.T.) dated 01.02.2016, the CENVAT Credit on CVD - Counter vailing duty has been omitted, retrospectively with effect from 1st of March, 2015. I wante....
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....d to discuss why this amendment has been made retrospectively while any other tax amendment has been proposed prospectively, Even respected Modi Government talked about prospective change. What will be the impact on those assesses who has taken set-off on CVD. Clarification is expected in this regard. Dear Experts please share your views in this regard. Reply By KASTURI SETHI: The Reply: Dear Sh....
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.....Ganeshan Kalyani Ji, Sir, What I understand CENVAT Credit on CVD has not been disallowed by way of Notification No.1/2016-CE(NT) dated 1.2.16. as only proviso to clause vii has been omitted retrospectively. This proviso was inserted vide Notification No.3/11-CE(NT) dated 1.3.11 effective from 1.3.11. By this notification restriction of availing not more than 85% of Additional Duty of Customs on ....
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....ships, boats etc-----------was imposed. This proviso stands omitted means restriction has been withdrawn. Now full credit of Additional Duty Customs paid on ships, boats etc. can be taken. This is in favour of assessee. Pl. go through the relevant extract of notification given below: "(2) They shall come into force with effect from the 1st day of March, 2015. 2. In the CENVAT Credit Rules, ....
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....2004, in rule 3, in sub-rule (1), in clause (vii), the proviso shall be omitted;" By implementing this notification retrospectively from 1.3.15, the Govt. has restored the benefit (say substantive right) which was snatched. Do you agree ? I would like to know your further observations. With regards, K.L.SETHI [ (2) They shall come into force with effect from the 1st day of March, 2015. ....
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.... 2. In the CENVAT Credit Rules, 2004, in rule 3, in sub-rule (1), in clause (vii), the proviso shall be omitted; Reply By CS SANJAY MALHOTRA: The Reply: Dear Mr. Ganeshan ji, What has been taken out in Notification No. 01/2016-CE(N.T.) dated 01.02.16 is "Availment of CENVAT Credit in excess of 85% of Custom Duty paid on Ships, boats and other floating structures" falling under Ch 8908....
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....0000 and not the CVD........ which stands as is..... (Deletion is the second part and not the primary one).... Hope above addresses your query........ Reply By MUKUND THAKKAR: The Reply: Thanks Sirs, for updating in micro level...both of you. Reply By surya narayana: The Reply: Dear Friend, The views expressed by Mr. Kasturi Sethi ji need no intervention since the said retrospective amendmen....
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....t is aimed to give benefit to the industry who was deprived of the said benefit . Regards Suryanarayana Reply By Ganeshan Kalyani: The Reply: Thanks for clarification Sri Kasturi Sir, Sri Sanjay Sir and Sri Surya Sir. Thanks. Reply By KASTURI SETHI: The Reply: The Govt. should have omitted the said proviso w.e.f. 1.3.11 i.e. the date of insertion instead of 1.3.15 in the interest of natura....
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....l justice. Right was snatched w.e.f. 1.3.11 but has been restored w.e.f. 1.3.15.<br> Discussion Forum - Knowledge Sharing ....