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 to pay countervailing duty at import; it is available for excise duty payments only. Cenvat credit (excise or service tax) cannot be utilised to pay countervailing duty (CVD) at import; cenvat balances may be applied for excise duty payment only, and there is no provision permitting use of such credit against CVD on imported goods.