Cenvat credit under central excise ruls

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Rajeev (Querist)
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15 August 2012 Dear Sir,

I am a manufacturer and i have purchase a machinery from Germany and i have CVD and additional duty so tell me how i will avail cenvat credit in this financial year and next f,y

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)
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16 August 2012 This machinery will be treated as a capital goods. CVD and Special additional duty(SAD) is collected on import in lieu of the excise duty and sales tax respectively.

Cenvat credit on Capital goods is available in 2 years - 50% in the 1st year and 50% in the 2nd year.

You can, therefore, claim the CVD in two parts. Of course, you can claim education cess and SHE cess on CVD too.