Credit of Duty paid on import of Lab. Equipments

[sachin shilamkar]

We are first stage dealers (importer) of essential oils. We need to import lab equipment which will be used to do testing of imported material.

Can we take credit of import duty (CVD & ACD) paid while importing of Lab equipment.

AI Summary

Eligibility of Claiming Credit for Duties on Lab Equipment in Essential Oils Testing Under Central Excise Act A discussion took place regarding the eligibility to claim credit for import duty paid on laboratory equipment used for testing essential oils. An importer inquired if they could claim credit for the countervailing duty (CVD) and additional customs duty (ACD) paid. One response indicated that if testing is considered manufacturing under the Central Excise Act, then central excise duty must be paid on marketed oils, allowing credit. If not considered manufacturing, credit cannot be claimed. Another response emphasized the need to verify the input-output relationship to determine credit eligibility.