11 September 2009
We imported huge quantity of Structural Steel namely H-section for making of structure for support of capital goods. we are not able to avail cenvat credit due to abmendment in Rule 2 by finance bill,2009 the explanation is as under :
Input include goods used in the manufacture of capital goods which are further used in the factory of the manufacturer 7[but shall not include cement, angles, channels, Centrally Twisted Deform bar(CTD) or Thermo Mechanically Treated bar(TMT) and other items used for construction of factory shed, building or laying of foundation or making of structures for support of capital goods].
Can I avail cenvat credit of Additional Duty of Custom u/s 3(5)on said Import since it is levied in lieu of Sales tax.
12 September 2009
No. Additional Duty is calculated on BCD/CVD. If CVD it self is not eligible then Addl. Duty is also not eligible to take Cenvat Credit.
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