Can we take credit of.......

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....an we take credit of.......<br> Query (Issue) Started By: - Mehul Trivedi Dated:- 3-6-2016 Last Reply Date:- 4-6-2016 Customs - Exim - SEZ<br>Got 5 Replies<br>Customs<br>Dear All, We have one querry , We have exported the goods and the same we have imported for repairing purpose , and paid all the duties like CVD, Addl, Custom and Cess. It is for repairing purpose and it will be back to the part....

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....y, so there has no money transaction will be involved. We will not do payment to the party. In this case, can we take cenvat credit of CVD and Addl duty ? Awaiting for reply, thanks. Reply By KASTURI SETHI: The Reply: Repair does not amount to manufacture in terms of Section 2(f) of the Central Excise Act. When no manufacturing process is to be carried out, why to take credit ? Reply By Raja....

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....gopalan Ranganathan: The Reply: Sir, You need not take credit of CVD and Addl. duty paid. Instead you can claim drawback of the duties paid at the time of re-import when you reexport the product after repair. Reply By KASTURI SETHI: The Reply: Sh.Trivedi Ji, I agree with the views of Sh.Ranganathan Sir. Reply By Ganeshan Kalyani: The Reply: Sir, credit is allowed only if the input used is ....

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....in or in relation to manufacturing activity. Repairing is not manufacturing and hence no credit allowed. Thanks Reply By surya narayana: The Reply: Dear Friend, It is not clear in your query , whether the import was under OGL or under re-import ( either under 94/96-CUs ) . If it is only for re-export after repairs, the right procedure would be to import under 158/95-Cus without payment of dut....

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....y or under 94/96-Cus ( on payment of only the duty prescribed therein which is cenvatable ) In view of this , as stated by Shri. Ranaganathan, the best way would be to claim DBK under Section 174 of Customs after re-export. Best Regards Suryanarayana<br> Discussion Forum - Knowledge Sharing ....