Import CVD on sample for trail production

[MITSUI PRIME ADVANCED]

Dear Sir,

 

I come to know that we have involved in manufacturing process of compound in relation of trail production required sample import form outside the country  . In this  case we are paying Import duty  allied CVD and Additional Duty 4% so as per current law regime . we can take cenvat of CVD  and Additional duty on Sample Import. We would not involved any payment to Vendor.

Please provide your valuable suggestion in this regarding.

 

Regards

Arjun SAchdeva

[YAGAY and SUN]

Yes you can avail the CENVAT credit.

AI Summary

Cenvat credit on import duties is claimable for sample imports used in trial production without vendor payment.
Duties paid on imported samples used in trial production, specifically countervailing duty and the additional duty akin to excise, are creditable as CENVAT where the importer-manufacturer is engaged in manufacturing for trial production and no payment is made to the foreign vendor; eligibility requires proof of import, payment of duties, and use of the goods in production.