Credit and Adjustment of Excise duty

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This query is : Resolved

pushpendra (Querist)

06 February 2008 If a Hotel ‘A” of Group “XYZ” is registered under the Service Tax Act and paying the service on the service provide by him like rent of Banquet Hall and Mandap Keepar

If the same hotel construct the other hotel building and he :

1. Purchase equipment and paid central Excise duty on it

My Query is :

Can he take the credit of Central Excise duty paid on the equipment

Can he adjusted the credit of excise duty against the the liability of service tax payment on Rent of Banquet Hall and Mandap Keepar

What will be difference he want to take the above credit or adjustment against the liability of any other hotel of Group “XYZ” .

pushpendra2@yahoo.com

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)

07 February 2008 Please refer to rule 3(4)(e) of Cenvat credit Rules 2004, which states as follows:

"Cenvat credit may be utilised for payment of dervice tax on output service".

pushpendra

pushpendra (Querist)

07 February 2008 pl. reply in detail

Dayal

Dayal (Expert)

11 February 2008 No dont make this blunder

The rencent circular denies credit of service tax on immovable property.

Even if it is rented out , thought it is debatebale and will not sustain in the court of law before the larger bench, you may take the credit but dont utilise unless the issue is clarified.

Refer CIRCULAR NO : 98/1/2008-ST., dated January 4, 2007

https://www.caclubindia.com/homepage/DM%20Associate/

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