My client is importing machinery in india. Now he is liable to CVD U/s 3(3) & 3(5) of Custom tariff act . now my question is that he can utilize service tax credit to pay duty U/s 3(3) & 3(5) of Custom tariff act.
Thanks & Regards
ca.Ashish goenka (profession) (92 Points)
06 September 2012
My client is importing machinery in india. Now he is liable to CVD U/s 3(3) & 3(5) of Custom tariff act . now my question is that he can utilize service tax credit to pay duty U/s 3(3) & 3(5) of Custom tariff act.
Thanks & Regards
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 06 September 2012
customs department accept payment in cash only, duty credit is not acceptable there:)
ca.Ashish goenka
(profession)
(92 Points)
Replied 06 September 2012
Mr.sharma pls quote relvevant rules of cenvat credit in this regards
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 06 September 2012
cenvat credit can be used only for
1) payment of duty on clearance of exisable goods / inputs
2) payment of service tax on taxable services
there is no other way to use the cenvat credit
please refer CCR 2004 at www.cbec.gov.in
CA Saiyum khan
(Practicing CA)
(685 Points)
Replied 10 September 2012
custom duty paid is eligible for set off against service tax / excise duty payable but not vice versa...:)
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