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Set-off of customduty paid against payment of service tax

Queries 664 views 1 replies

One of my clinent has started a hair clinic for their new project.

For that they have imported a very expensive machines and cosmetics and paid custom duties on that.

They have paid following duties on that.

1) Basic Custom Duty (?)

2) Counter Vailing Duty (Allowed)

3) S.CESS & SAHES ( Not Allowed)

Client is charging service tax on the treatments done through this machines and cosmetics.

 

I want to know, is there any cenvat is available of the customs duty paid on the above machines and cosmetics against payment of servicetax?

 

 

Replies (1)
CENVAT credit on Customs Duty (also Cess on CD) is not available as per the Rule 3 of CENVAT Credit Rules, 2004. It may also be noted that being an output service provider, no credit is available on Additional duty,if any, paid u/s 3(5) of Customs Tariff Act


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