In case of goods purchased from EOU, Rule 3 (7) of Cenvat Credit Rules, 2004 provides a formula for calculating quantum of credit to be availed. However, the formula applies only when the EOU paid duty under serial 2 of the notification No. 23/2003-CE (ie BCD 50% of normal BCD).
Will someone clarify?
if EOU has paid full rate of duty that specifies that they are unable to maintain the criteria specified under notification. which bars the buyer to avail the input credit.
in absence of compliance of notification 23/2003 CE there is no provision to take input credit of customs duty paid.
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