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CVD credit on import by output service provder

This query is : Resolved 

19 March 2009 Dear Experts,

Could you clarify the CVD paid on imported inputs used for providing output sevice only not involving any manufacturing, the credit eligible for input cenvat Credit. As per Cenvat Credit Rules no credit will be available if final product exempt from exise duty or if there is no manufacturing of the goods.

If eligible give provisions of the act with referecne of section/rule

Thanks in advance

19 March 2009 Yes you can avail CVD paid on imported inputs used for providing taxable output service refer Rule 3(vii) of CENVAT credit Rules,2004.However, you are not allowed to take credit of additional duty leviable under sub-sec(5) of Sec 3 of the Customs Tariff Act(refer Rule 3(viia) of CCR 2204)


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