23 February 2008
Facts:We are in the manufacturing of bulk drugs. We are hiring the vehicles for transportation of our employees and some times used for guests travelling to the factory visit.We have been paying the service tax on vehicle hire charges.
Can i take the input credit of the service tax paid on hire charges?
25 February 2008
Thank you very much for your early response. I have argued with the authorities that the activity is related to the business i.e emplyees trvelling to the work place and hence we have taken the cenvat credit.
But the excise authorities in their EA Audit 2000, asked me to reverse the service tax credit, which i was utilised earlier.
26 February 2008
Same benefit is available in CCR and some case have also been decided by SC. If you prooved that same is related to manufacturing. same will be allowed.
01 March 2008
whether the service is directly or indirectly related for manufacturing or providing output service you can take as input for your cenvat payble.
CAclubindia
