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CA Jignesh Patel (Querist)
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26 August 2011 Crane is hired at the factory of the manufacturer for the repairs and maintinance operation of the plant,

Service tax

is charged by the party who has given the Crane on hire to the Factory

Whether the CENVAT credit of the service tax paid on such hire charges is available??

Please give relevent case law/notification

U S Sharma

U S Sharma (Expert)
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26 August 2011 plant and machinery is used for manufacture of goods which are cleared after paying of excise duty , then such input credit is available, CCR2004

if exempted, then not available

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CA Jignesh Patel

CA Jignesh Patel (Querist)
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26 August 2011 Sir this is the case of HIRING of CRANE for the purpose of replacement of parts of the machinary,,,, On the hire charges Service tax is charged by the Party,, Whether the credit of such service tax paid is available or not??/

U S Sharma

U S Sharma (Expert)
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26 August 2011 if the main products of factory are subject to payment of excise duty then input credit available, otherwise not.

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