Cenvat credit of cvd u/s 3(5)

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CA Varsha Haryan

CA Varsha Haryan (Querist)
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11 August 2013 whether CENVAT credit available on CVD levied u/s 3(5)(Duty equal to sales Tax)

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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13 August 2013 CENVAT credit is available for CVD charged under sec.3(5) following cases

1.when manufacturer using that materials for their manufacturing purpose ( Notification: 18/2006

2. Incase of traders selling imported goods in India after charging Sales tax/VAT,they can claim the refund Notification:102/2007

But incase of service provider, no CENVAT credit because the duty basically charged the effect of VAT/Sales tax on that goods.