CVD at the time of import can be paid through Excise Credit or Service Tax Credit ??

[Mehul Pandya]

Sir,

We have cenvat credit balance in Excise and Service Tax, and we are importing some of raw material from other country. To pay the CVD and addittional duty on that imported goods can we utilise our cenvat account for the same. Is there any provisions for that.

[YAGAY andSUN]

No it cannot be.

[MUKUND THAKKAR]

you can utilized your cenvat credit balance for the payment of excise duty only..

[YAGAY andSUN]

But not in the case of payment of CVD.

AI Summary

Cenvat Credit Cannot Be Used for Countervailing Duty Payments on Imports, Only for Excise Duty Payments. A user inquired whether Countervailing Duty (CVD) at the time of import can be paid using Excise Credit or Service Tax Credit. Three responses were received. One respondent clarified that Cenvat credit cannot be used for paying CVD. Another stated that Cenvat credit can only be utilized for excise duty payments, not for CVD. The discussion highlighted that existing provisions do not allow the use of Cenvat credit for CVD payments on imported goods.