hello friends, Please clear one doubt relating to excise
if a company is getting exemption from payment of excise duty on finished product but liable to pay vat on the sale
and company is making import of raw material and paid a CVD 3(1) and CVD 3(5) as per custom law then the credit of both is available to the co. or not
Even if you get credit of 3(5), you cant utilise it since your final product is exempted one. Regarding 3(1), you need not pay at all while importing. You can show that your FG is an exempted one and need not pay CVD for your inputs.
Under Rule 3(1) of the Cenvat Credit Rules,2004, a manufacture or producer or provider of output service may be allowed credit of various duties/tax including CVD 3(1) & 3(5) provided the inputs are used in the manufacture of dutiable final product. As you are exempt from excise duty, you are not eligible for any credit.