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Service Tax Cenvat Credit

SUNIL KUMAR DAGA (PROFESSION) (26 Points)

17 May 2011

CVD paid on purchase of a vessel be availed as Cenvat Credit. Is veseel falling within the defination of Capital goods for Cenvat Credit in service tax act.

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6 Replies

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 17 May 2011

unless you specify your business activity, and use of such vessel in your business for providing taxable output or taxable goods, proper replay can not be placed

SUNIL KUMAR DAGA (PROFESSION) (26 Points)
Replied 17 May 2011

Business - Shipping - Coastal Voyage.

1)Is service tax applicable on freight charged to client.

2)CVD Paid on purchase of vessel - can this be used as Cenvat Credit.

3)Is vessel falling within the defination of Capital Asset.

Please revert back.

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 18 May 2011

"capital goods" means:-

(A) the following goods, namely:-

(i) all goods falling under Chapter 82, Chapter 84, Chapter 85, Chapter 90, heading No. 68.05 grinding wheels and the like, and parts thereof falling under heading 6804 of the First Schedule to the Excise Tariff Act;

(ii) pollution control equipment;

(iii) components, spares and accessories of the goods specified at (i) and (ii);

(iv) moulds and dies, jigs and fixtures;

(v) refractories and refractory materials;

(vi) tubes and pipes and fittings thereof; and

(vii) storage tank,

used-

(1) in the factory of the manufacturer of the final products, but does not include any equipment or appliance used in an office; or

(2) for providing output service;

(B) motor vehicle registered in the name of provider of output service for providing taxable service as specified in sub-clauses (f), (n), (o), (zr), (zzp), (zzt) and (zzw) of clause (105) of section 65 of the Finance Act;