For imported inputs we are paying CVD & SAD etc. under incentive scrips i.e. FMS/FPS/MLFPS. Whether these duties are eligible for cenvat credit? Please clarify with cases laws, if any.
These scrips are issued under Chapter - III of Foreign Trade Policy.
A.Manoharan
CENVAT Credit Eligibility Clarified for Duties Paid via Incentive Scrips; Service Providers Excluded from 4% CVD Credit. A query was raised regarding the eligibility of CENVAT credit for duties paid on imported inputs using incentive scrips under the Foreign Trade Policy. It was clarified that duties such as CVD and SAD paid through Duty Credit Scrips are eligible for CENVAT credit, referencing Central Excise Notifications No. 29/2012 and 30/2012. Additionally, it was noted that service providers are not eligible for a 4% CVD under Section 3(5) of the Customs Tariff Act. For domestically sourced goods, CENVAT credit is applicable as per the mentioned notifications. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
