cenvat credit on inputs

[raj nadh]

Dear All,

I am working in an 100 percent EOU. We are getting inputs from our vendors on without payment of duty) CT-3.

How can I take credit on the inputs.

[Rajagopalan Ranganathan]

Sir,

         CT-3 authorizes your vendor to remove excisable goods without payment of duty.  Hence there is no question of availing credit of duty since the duty paid is Nil or 0

[raj nadh]

Thank you for the clarification. We are executing b-17 bond. So pls suggest me the credit - debit procedure on inputs

Thanking you

[Rajagopalan Ranganathan]

Sir,

I am not able to understand your query. 17 bond is executed by you for obtaining raw materials and capital goods without payment of duty (both imported and indigenous procurement).  Since the inputs and capital goods are received without payment of duty question of taking credit does not arise.   Therefore please frame your question so as to bring out the point to be clarified.  

AI Summary

Cenvat credit cannot be claimed on inputs supplied under duty-free vendor authorization or bond arrangements. Inputs received without payment of excise duty under vendor authorization (CT-3) or under a recipient-executed bond for duty-free procurement do not qualify for Cenvat credit because no excise duty has been paid; accounting and compliance must reflect duty-free receipt rather than claiming credit.