One of our Overseas Customer returned goods on account of rejected materials while clearing the materials from custom Department our agent has cleared Goods without paying custom duty whereas he has paid CVD on assessable Value .
Pl. advice can we take credit on that CVD treating as Goods rejected and returned under Cenvat credit Act and clear same material with payment of excise duty to local customers.
If any problem arise due to non payment of custom duty while taking credit.
Can CENVAT credit be claimed on CVD for rejected goods? Rule 16 allows, but notify customs for non-paid duties. An overseas customer returned goods due to rejection, and the goods were cleared by an agent without paying customs duty, although Countervailing Duty (CVD) was paid. The inquiry seeks advice on whether CENVAT credit can be claimed on the CVD for the rejected goods and if they can be sold locally with excise duty payment. The response suggests availing CENVAT credit under Rule 16 of the Central Excise Rules 2002, but advises notifying customs authorities due to the initial non-payment of customs duty and potential undertakings given for re-exportation. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
