Applicability of cenvat credit to the division of main unit

This query is : Resolved

rgurucharan (Querist)
Follow

13 August 2014 Dear sir,

Applicability of Cenvat credit rules.

MSM pvt ltd (MSM) is not registered with central excise but registered with service tax.

MS watertech pvt ltd (MSW) - has become the division of MSM pvt ltd, and the company is not wound up.

MSW is registered with service tax and not registered with central excise.

Whether the cenvat credit of MSM can be adjusted with the Service tax payment of MSW?

with regards,
R. Gurucharan.

Rupesh Jain

Rupesh Jain (Expert)
Follow

13 August 2014 if your co/firm registered with the service tax then you cannot take cenvat of purchases of goods for that your finished product will be excisable product and you should be registered under excise act.
if you have centralized service tax number for one company and have branches in all over india then you take the cenvat of services related to your output services.

other wise not possible.