Duty credit scrips:
The duty credit scrip may be used for import of any capital goods, including spares, office and professional equipment, office furniture and consumables that are otherwise freely importable under ITC (HS) classification 
of export and import items
The duty free scrip can be utilized for payment of excise duty on such “inputs” that are permitted for imports under para 3.6.4.5 of the foreign trade policy

Announcements on Duty credit scrips under Chapter 3:

1)  The scrips under Chapter 3 Schemes will be eligible for utilization for offsetting

          excise duty in case exporter procures from domestic
market to give a       focused thrust for manufacturing in domestic industry. Further it has been allowed utilization of duty credit scrip issued under FMS, FPS and VKGUY for payment of service tax on procurement of services.

2) All duty credit scrips under Chaper 3 will also be eligible for payment of application fee, composition fee and value-wise shortfall in export obligation. This benefit will be available to the original holder of the duty credit scrip.

3) Duty credit scrips equivalent to 10% of free foreign exchange earned is issued under Served From India Scheme (SFIS), but currently is allowed for imports relating to any service sector business of applicant. However, recognizing that a group company of service sector provider may also be engaged in manufacturing, we have decided to allow usage of SFIS scrips for import or domestic procurement of capital goods including spares related to manufacturing sector business of such service provider.