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

Cenvat credit on inputs: not claimable where inputs are supplied duty free under ARE 3 to export oriented units.
Cenvat credit is unavailable for inputs supplied to an export-oriented unit under ARE-3 without payment of duty; since no duty is paid or payable on such inward supplies from the Domestic Tariff Area, the essential condition for claiming Cenvat credit is not met and credit cannot be taken.