Cenvat on Input used on Exem goods(used for output service)
This query is : Resolved
01 July 2011
PLEASE PLEASE READ FULL QUERY.
one firm provide services under category 'Supply of Tangible Goods' using exempted capital goods.
Such capital goods are manufactured using various inputs. Cenvat credit on such input is utilized for output service tax payment.
Now the question is
can one take cenvat credit on inputs used for manufacturing exempted capital goods which are in turn used as intermediate goods for providing taxable service (supply of tangible goods).?
If yes/no how/why.
The Hon Supreme Court, in the case of CCE Vs Solrais Chemtech Limited (2007) 214 ELT 481 (SC) has held that even though intermidiate product is non-excisable, being used for manufacture of taxable GOODS, modvat credit on inputs used for such intermediate product is allowed.
CAN WE CONSIDER TAXABLE GOODS AND TAXABLE SERVICE ON THE SAME FOOTING FOR CENVAT PURPOSES.??
SINCE CENVAT CREDIT FOR GOODS AS WELL AS SERVICE WHAT WILL BE THE CORRECT POSITION.?
THANKS IN ADVANCE
NILAY
one firm provide services under category 'Supply of Tangible Goods' using exempted capital goods.
Such capital goods are manufactured using various inputs. Cenvat credit on such input is utilized for output service tax payment.
Now the question is
can one take cenvat credit on inputs used for manufacturing exempted capital goods which are in turn used as intermediate goods for providing taxable service (supply of tangible goods).?
If yes/no how/why.
The Hon Supreme Court, in the case of CCE Vs Solrais Chemtech Limited (2007) 214 ELT 481 (SC) has held that even though intermidiate product is non-excisable, being used for manufacture of taxable GOODS, modvat credit on inputs used for such intermediate product is allowed.
CAN WE CONSIDER TAXABLE GOODS AND TAXABLE SERVICE ON THE SAME FOOTING FOR CENVAT PURPOSES.??
SINCE CENVAT CREDIT FOR GOODS AS WELL AS SERVICE WHAT WILL BE THE CORRECT POSITION.?
THANKS IN ADVANCE
NILAY
03 July 2011
May not be possible though the logic is ok as credit for ST is only if used for provding taxable service.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- House Property Reporting in ITR
- Internship/Academic shown in Salary Pay Slip of a Doctor
- TDS Claim year
- Refund of 20%pre-deposit paid for stay application
- Rent lease agreement
- TDS Challan Code
- Relief u/s Section 89
- Nomination of Bank for refund in itr 2
- GST Rate applicable for 0% Food Items sold by an Industrial Caterer
- STCG on ETF gold & silver
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
