04 October 2009
one of my client had purchased a machinery from outside india for use in its service providing business of installation & commissioning & repairs & maintenance. whether cenvat credit will be allowable to him on the amount of custom duty or additional custom duty ? please guide me
05 October 2009
Only countervelling duty, known as CVD is allowed for the purpose of Cenvat credit. Additional duty of customs is not allowed to service providers. Such a duty can be taken by a manufacturer only.