The CESTAT ruled that the countervailing duty (CVD) paid voluntarily by Acculife Healthcare was not eligible for Cenvat credit as it was not based on a specific demand.
CESTAT Upholds Denial of Cenvat Credit Against Acculife Healthcare
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has upheld the denial of Cenvat credit to Acculife Healthcare concerning the countervailing duty (CVD) paid voluntarily, without a specific demand from the authorities.
The tribunal pointed out that the CVD amount in question lacked the requisite statutory underpinning since it was voluntarily paid, which contravenes the conditions required for availing Cenvat credit as stipulated under the Central Excise Act.
This ruling is significant as it reinforces the strict compliance required for claiming Cenvat credit. The tribunal’s acceptance of the Revenue’s stand that a specific demand is a prerequisite is a crucial takeaway for tax practitioners dealing with Cenvat claims.
Citations
- Acculife Healthcare (2026) CESTAT Order
