Cenvat credit availability

[V Khanna]

We (a DTA unit) purchase some materials from an EOU uni. What Cenvat credit will be available to us? Is it as per Rule 3(7) or as per proviso to Rule 3(7)?

Regards

AI Summary

Clarification on Cenvat credit calculation: Use Rule 3(7) formula for DTA unit purchases from EOU units. A DTA unit inquired about the availability of Cenvat credit when purchasing materials from an EOU unit, questioning whether it should be calculated according to Rule 3(7) or its proviso. The response clarified that the credit should be taken as per the formula prescribed under Rule 3(7) of the CCR rules 2004, which involves multiplying the assessable value (X) by (1+BCD/400) and then by (CVD/100).