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Cenvat credit on inward transport of repaired capital goods


14 September 2013 Service Tax Credit is available for inward transportation of capital goods. But if the same is sent for repair and bring back to factory, whether that service tax on inward transportation will be available?

15 September 2013 In my opinion credit will be available, since without carrying out this activity capital goods could not be brought inside the factory for carrying out the manufacturing process. Input service include all service directly or indirectly related to the manufacturing process. This is an indirect activity without which manufacturing process cannot be carried out. SO credit is justifiable.

18 September 2013 Thank you Mr. Vijay,

In the same case, what about the service tax paid on outward transportation of the same capital goods sent for repair. Whether this CENVAT Credit will also be available?


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