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 )

AI Summary

Eligibility of Input Credit on CVD for Consumables Used in Capital Assets Maintenance Under Service Tax Provisions A query was raised regarding the eligibility to claim input credit under service tax provisions for countervailing duty (CVD) paid on imported consumable items or tools used for repair, which are not capital assets but are used for capital assets maintenance. One respondent expressed difficulty in understanding the query, while another suggested that credit could be claimed according to capital goods provisions.