Input credit on import of tools / repair

[RAM AVTAR]

Whether CVD ( Custom duty ) paid for import of CONSUMABLE ITEM/ TOOLS in the nature of repair ( no capital assets , infact used for capital assets - wear and tear ) can be claimed as INPUT CREDIT under service Tax provision

PS: claiming the input credit on CVD Paid on import of capital assets in two years ( 50 % each )

[Mahir S]

Sir,

I am not able to fully understand your query correctly especially the P.S. clarification provided by you.

[PAWAN KUMAR]

Dear Sir,

As per my view, credit can be claimed as per capital goods provisions.

AI Summary

Input credit on customs duty: treat CVD on imported repair tools under capital goods provisions for credit eligibility. Whether CVD on import of repair tools or consumables used on capital assets qualifies as input credit under service tax and whether CVD on imported capital goods may be apportioned across years are queried; responses record an unclear advisory and a view that credit should be claimed under the capital goods provisions, applying the eligibility and apportionment mechanisms for capital goods rather than treating the items as ordinary consumables.