TaxTMI 
TaxTMI 
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
Cenvat Credit against rejected imported packing material.
29 Nov 2014 
1 Reply 
1778 Views Asked by
Cenvat credit on imported packing material allowed only if received and used; otherwise credit must be reversed.
Cenvat credit of CVD and SAD on imported packing material is allowable only when the material is received in the factory and used in or in relation to manufacture of dutiable final products. If rejected prior to receipt, credit cannot be availed. If rejected after receipt and credit taken, the credit must be reversed when the rejected material is not chargeable to excise duty; if dutiable, the credit may be used to pay duty on the rejected material, subject to departmental adjustment where credit exceeds duty payable. (AI Summary)
Cenvat credit of CVD and SAD on imported packing material is allowable only when the material is received in the factory and used in or in relation to manufacture of dutiable final products. If rejected prior to receipt, credit cannot be availed. If rejected after receipt and credit taken, the credit must be reversed when the rejected material is not chargeable to excise duty; if dutiable, the credit may be used to pay duty on the rejected material, subject to departmental adjustment where credit exceeds duty payable. (AI Summary)