Case Law Details
Commissioner of CGST Vs Shyam Steel Industries Limited (Calcutta High Court)
The question which falls for consideration in this appeal is whether the assessee is eligible to avail CENVAT Credit availed in respect of 1 % or 2 % (concessional rate) Additional duty of Customs (CVD)paid on imported coal in terms of Notification No. 12/2012-Cus. dated 17.03.2012 and Notification No. 12/2013-Cus. dated 01.03.2013 and as to whether there is any restriction for availing CENVAT Credit in terms of the said notification particularly as mentioned in Serial No. 67, Condition No. 25.
The circular issued by CBEC in Circular No. 41/2013-Cus dated 21.10.2013is also of relevance to the case on hand. The necessity to issue the circular arose as doubt was raised whether an importer, while availing the “Basic Customs Duty” (BCD) Exemption at 10 % under FTA can simultaneously avail of the concessional countervailing duty (CVD) at 2 % as per Notification No. 12/2012-Cus. dated 17.03.2012 or he has to pay the CVD at 6 %, which is rate of excise duty applicable on Steam Coal when CENVAT facility has not been availed. The issue was clarified on the following terms:-
♦ In the present case, the excise duty applicable on Steam Coal is 6%, if CENVAT benefit is availed of an 1% if the CENVAT benefit is not availed of, Normally, Steam Coal will suffer 6% CVD, as the condition of non-availment of cenvat benefit cannot be satisfied in respect of imported goods. However, in the Budget 2013-14, as a conscious policy decision, it was decided to levy 2% CVD both on steam coal and bituminous coal. This is the general applied rate of CVD on all imports of steam coal and bituminous coal regardless of the excise duty leviable on like domestic coal. No such condition has been laid down that an importer cannot avail of this concessional CVD of 2% is he has availed of the concessional BCD on steam coal under another notification.
♦ It is therefore clarified that an importer while availing of BCD exemption on steam coal under FTA notification No. 46/2011-Cus can simultaneously avail of concessional CVD at 2% under notification No. 12/2012-Cus.
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