cenvat credit rules for an 100% EOU

[raj nadh]

Dear Sirs,

My unit is a 100 percent EOU. we are receiving raw materials from both domestic and import. We are purchasing the material on ARE-3.

How can I take credit on the inputs as we are purchasing them on ARE-3

[Rajagopalan Ranganathan]

Sir,

Inputs are supplied to 100 percent EOU by manufacturers located in Domestic Tariff Area (DTA)    without3.  Hence the question of availing credit of duty paid on such inputs does not arise.

[Rajagopalan Ranganathan]

Sir,

           Inputs are supplied to 100 percent   EOU by manufacturers located in Domestic Tariff Area (DTA) without payment of duty under ARE-3.  Hence the question of availing credit of duty paid on such inputs does not arise since no duty is paid/payable on such inputs.

AI Summary

100% EOU Cannot Claim CENVAT Credit on Duty-Free Inputs from Domestic Tariff Area under ARE-3 Rules A 100% Export Oriented Unit (EOU) inquired about availing CENVAT credit on inputs purchased under ARE-3 from both domestic and imported sources. The response clarified that inputs supplied by manufacturers in the Domestic Tariff Area (DTA) to a 100% EOU under ARE-3 are not subject to duty. Therefore, the issue of claiming credit on duty does not arise as no duty is paid or payable on these inputs.