Cenvat Credit of CVD

Special CVD eligible for cenvat to manufacturer but not to service provider.

Additional duty paid u/s 3(5) of the custom tariff Act(special CVD) is eligible for cenvat credit for a manufacturer, but a provider of taxable services is not eligible for such credit [ Rule 3(i)(viia) of cenvat credit rules.].

As per Cenvat Credit Rule, 2004 Rule 3(1) says that a service provider can avail all the Cenvat credit as applicable to the manufacturer except that of Special CVD, hence a service provider can avail the credit of CVD on imported Inputs and Capital Goods.