CVD and Additional duty on Sample import

[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]

if such samples are required for your manufacturing operations or are being used in or in relation to manufacturing, then you can avail the Cenvat Credit .

AI Summary

Cenvat credit for imported samples used in manufacturing is allowed when the samples are integral to production.
Imported samples that are required for, or used in, manufacturing operations, including trial production or testing related to manufacture, qualify as inputs and the countervailing duty and additional duty paid at importation are eligible for Cenvat credit, provided the importer can demonstrate the nexus between the sample and the manufacturing activity.