AVAILMENT OF CREDIT ON IMPORTED MATERIAL

[Guest]

Dear Sir,

We have imported a material first for trail purpose say in 2014 at that time we had paid appropriate customs duty but we have not availed any credit for the said material at that time. Now the importer will be selling such material, therefore please explain us how can we avail such credit on the basis of which document and can we avail the credit now.Therfore please explain us the Central excise provision, Thanks & regards.

[Rakesh Gupta]

There are 3 scenarios:

If the importer is selling the import material in the domestic market, there is no credit that can be availed.

In case the import material is being used for the manufacture of exciseable goods, benefit of the CVD portion of the import duty can be obtained.

In case the imported material is being sold overseas (i.e. export), then exporter is eligible to claim refund of the import duty (as drawback).

Rakesh Gupta

AI Summary

Availment of credit on imported material: domestic sale disallows credit, manufacture allows CVD credit, exports permit drawback refund. Availment of credit on imported materials varies by destination: domestic sale disallows credit; use in manufacture permits benefit of the countervailing duty (CVD) portion of import duty; export of the material permits the exporter to claim a refund of import duty as drawback.