Crazy, awful place — Brazil may be in it (8)
I believe the answer is:
nutshell
'brazil may be in it' is the definition.
(as in Brazil nuts)
'crazy awful place' is the wordplay.
'crazy' becomes 'nuts' (nuts can informally mean crazy or mad).
'awful place' becomes 'hell'.
'nuts'+'hell'='NUTSHELL'
(Other definitions for nutshell that I've seen before include "One on almond" , "Casing for kernel" , "succinct" , "Hard container for edible kernel - or for brief summary" , "Fruit's woody covering" .)