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Monday, August 14, 2006

CVD TO BE CENVATABLE NOT REFUNDABLE

The Central Board of Excise & Customs (CBEC) has stated that exporters cannot claim exemption from the special 4% countervailing duty (CVD) on imports. The CVD cannot be debited through the duty-free credit entitlement scrips under export promotion schemes namely DEPB, Serve-from-India, Target Plus, visesh krishi upajyojana etc. The CVD was imposed on most imports in Budget 2006-07, in lieu of value added tax (Vat) on domestic goods. Exporters, however, will be free to take credit for the duty paid, in keeping with the principle of Cenvat chain.

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