Whether the Customs Duty (CVD) paid is CENVATable?

This query is : Resolved

CA. Arul Mozhi Varman (Querist)
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25 January 2010 In the year 2005, a company imports a raw material without payment of duty against Advance Licence. The company had to fulfill the export obligation within 2 years.

The Company failed to fulfill the export obligation. In 2009, the Customs dept. issued a demand notice for BCD, CVD and interest for the B/E in the 2005. The Company paid the import duty(BCD + CVD) along with interest.

Now in the fin year 2009-10, can the company take the CVD for CENVAT???

Thanks in advance,
Arul.

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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30 January 2010 Yes credit of the CVD and the SAD if nay would be available as credit provided that the inputs had/will be used for manufacture of excisable goods. There is no time limit specified for credit.