Cenvat Credit against rejected imported packing material.

[Samik Chaudhuri]

I would like to know can we take cenvat credit (CVD +Import Duty)against rejected imported packing material? We are not interested to send back the material. Please confirm me.

With thanks

Samik Chaudhuri

AI Summary

Cenvat Credit on Rejected Packing Materials: Eligibility Depends on Usage in Manufacturing Dutiable Products; Conditions Apply A query was raised regarding the eligibility to claim Cenvat credit on rejected imported packing materials without returning them. The response clarified that Cenvat credit for Countervailing Duty (CVD) and Special Additional Duty (SAD) can only be claimed if the materials are received and used in manufacturing dutiable products. If rejected before factory receipt, credit cannot be claimed. If rejected post-receipt, credit must be reversed unless the material is dutiable, in which case it can be used for duty payment. The department may require repayment if the credit exceeds the duty paid on the imported goods.