Eligibility as input for service provider

Save Share

This query is : Resolved

SIDDHARTHA SANKAR ROY (Querist)
Follow

02 April 2009 One company engaged in providing services of " Transportation of goods through pipeline" . They mainly undertake transportation of petroleum products through pipeline owned by them. Now they mix some additive with the goods(say crude) while transporting. The additive acts as an anti-corrosive agent for the pipeline. Whether the company claim cenvat credit of the C.Ex duty paid on such additive as input.

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
Follow

03 April 2009 Dear Siddhartha,

The additive would be an input used in providing the service and would certainly be eligible for cenvat credit on the CED.
It is assumed that no abatement has been claimed.

In general the availability of credit exists unless the same is barred.

SIDDHARTHA SANKAR ROY

SIDDHARTHA SANKAR ROY (Querist)
Follow

06 April 2009 Thanks.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!