Cenvat credit of custom duty

This query is : Resolved

Ashish Khandelwal (Querist)
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23 September 2013 DEAR ALL
PLZ GUIDE ME
SUPPOSE DISH TV INDIA IMPORT SET TOP BOX FROM CHINA,AND SELL IT TO THEIR CUSTOMERS.THESE SET TOP BOXES ARE USED TO PROVIDE CABLE SERVICES TO CUSTOMERS. PLZ TELL ME WHETHER DISH TV INDIA CAN USE CUSTOM DUTY CREDIT FOR PAYMENT OF SERVICE TAX.

Arun Kumar Singh

Arun Kumar Singh (Expert)
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24 September 2013 You can not pay the service tax from CVD involved in the set top box imported goods. both are referent transaction.

Ashish Khandelwal

Ashish Khandelwal (Querist)
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24 September 2013 THANKS FOR ANSWERING
PLZ SIR, EXPLAIN YOUR ANSWER IN SOME DETAIL.

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CA Suresh Jain

CA Suresh Jain (Expert)
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26 September 2013 1. Dish Tv is importing Srt top boxes
2. Paying custom duty and CVD
3. selling them to customer, who now owns the set top box

It is trading and no service tax on this is chargeable and therefore, no question of set off.

Transmission service through the set top box is a service which has nothing to do with sale of set top boxes.

disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case