13 February 2014
We are importing material from outside india. please let us know whether can we claim cenvat on E cess and HE cess on basic duty under custom act. if yes please mention section/ provision/ notification and if we can't claim than please mention the same.
13 February 2014
Dear Manoj, You can not claim Cenvat on E Cess and HE Cess when you import material from overseas. In fact when you import material from overseas, E Cess and HE Cess will be applied on basic duty + CVD. Couple of years back, E Cess and HE Cess were applicable on CVD and again on (Basic Duty + CVD + E Cess on CVD + HE Cess on CVD) As it was charged twise that time, E Cess and HE Cess paid on CVD were allowed as Cenvat. Currently as E Cess and HE Cess on CVD are not levied, Cenvat can not be claimed. Hope I have clarified your query. Please feel free to ask any further questioin.
CAclubindia
