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Cvd adjustment

Prakash Acharya (Chief Accountant) (52 Points)

28 August 2012

I am working in a Teflon Manufacturing Company. We are importing raw materials and the party are levying CVD on import purchase. I just want to know whether i can adjust this CVD against the Excise duty payable if yes , i just want to know under what provision of the central excise act the same can be adjusted against the duty payable..... i am just waiting for your reply

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U S Sharma (glidor@gmail.com) (21056 Points)
Replied 28 August 2012

Rule 3. CENVAT credit. ---(1) A manufacturer or producer of final products or a provider of taxable service shall be allowed to take credit (hereinafter referred to as the CENVAT credit) of –

(i)	the duty of excise specified in the First Schedule to the Excise Tariff Act, leviable under the Excise Act;
(ii)	the duty of excise specified in the Second Schedule to the Excise Tariff Act, leviable under the Excise Act;
(iii)	the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Textile and Textile Articles) Act,1978 ( 40 of 1978);
(iv)	the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 ( 58 of 1957);
(v)	the National Calamity Contingent duty leviable under section 136 of the Finance Act, 2001 (14 of 2001);
(vi)	the Education Cess on excisable goods leviable under section 91 read with section 93 of the Finance (No.2) Act, 2004 (23 of 2004);
(via)	the Secondary and Higher Education Cess on excisable goods leviable under section 136 read with section 138 of the Finance Act, 2007 (22 of 2007);
(vii)	the additional duty leviable under section 3 of the Customs Tariff Act, equivalent to the duty of excise specified under clauses (i), (ii), (iii), (iv), (v) (vi) and (via);
(viia)	the additional duty leviable under sub-section (5) of section 3 of the Customs Tariff Act,

https://www.cbec.gov.in/excise/cxrules/new-cenvat-rules.htm

ountervailing Duty (CVD)

· CVD equal to excise duty is payable on imported goods u/s 3(1) of Customs Tariff Act to counterbalance impact of excise duty on indigenous manufactures, to ensure level paying field.

· CVD is payable equal to excise duty payable on like articles if produced in India. It is payable at effective rate of excise duty.

· General excise duty rate is 10.30% w.e.f. 27-2-2010 (10% basic plus 2% education cess and SAH Education cess of 1%).

· CVD is payable on assessable value plus basic customs duty. In case of products covered under MRP provisions, CV duty is payable on MRP basis as per section 4A of Central Excise.

· CVD can be levied only if there is ‘manufacture’.

· CVD is neither excise duty nor basic customs duty. However, all provisions of Customs Act apply to CVD.

https://www.dateyvs.com/custom01.htm

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