Service tax credit against cvd

1064 views 4 replies

 

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

Replies (4)

customs department accept payment in cash only, duty credit is not acceptable there:)

Mr.sharma pls quote relvevant rules of cenvat credit in this regards

 

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

custom duty paid is eligible for set off against service tax / excise duty payable but not vice versa...:)

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