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
Manufacturing Company Eligible for Cenvat Credit on Duties Paid for Imported Trial Production Samples Under Section 3 A manufacturing company inquires about the eligibility for Cenvat Credit on Countervailing Duty (CVD) and Additional Duty paid on imported samples used for trial production. The company clarifies that no payment is made to the vendor for these samples. A respondent confirms that if the samples are used in or related to manufacturing operations, the company can avail of Cenvat Credit on the duties paid. (AI Summary)