Cenvat credit on excise duty paid

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This query is : Resolved

Tanna Divyesh (Querist)

12 February 2013 I registered as service provider and taking CENVAT credit of service tax paid on input services. And also purchasing goods on which i am paying excise duty.

My question is can i take cenvat credit of excise duty paid on goods?

Arun Kumar Singh

Arun Kumar Singh (Expert)

12 February 2013 Yes, you can take cenvat credit on duty paid on excise duty but input should be used in providing of output services.

Tanna Divyesh

Tanna Divyesh (Querist)

13 February 2013 Sir Please provide me reference for the same if any

Arun Kumar Singh

Arun Kumar Singh (Expert)

13 February 2013 The CENVAT credit in respect of inputs may be taken immediately on receipt of the inputs in the factory of the manufacturer or in the premises of the provider of output service under rule 4(1) of the cenvat credit rules 2004.

Tanna Divyesh

Tanna Divyesh (Querist)

13 February 2013 1. We are into the business of Cinema exhibition & Snack bar.
In Snack bar we sell foods & beverages items; at the time of purchase we pay excise duty on F&B items.
2. And we have registered as Service Provider of following services:
1. Renting
2. Advertisement
3. Business Auxiliary
4. Business Support

My question is that “Can I take input of excise duty paid on food & Beverages items while paying service tax on above services”.

Arun Kumar Singh

Arun Kumar Singh (Expert)

13 February 2013 Cenvat credit on input of excise duty paid on food & Beverages items will not be available.

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