Excise credit on cement purchase

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Querist : Anonymous

Querist : Anonymous (Querist)

28 October 2014 Dear Sir / Mam
My client is a construction co. and purchases cement and paid excise duty on this . but he is not taken any credit of this excise duty in service tax.

Now my point is whether he is liable to take credit in service tax or not?

please help me as soon as possible .

Annu Agarwal

Annu Agarwal (Expert)
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28 October 2014 As your client is into construction services,As per Rule 2A of Valuation Rules ,he cannot take cenvat credit of duties paid on any inputs used in or in relation to its construction contracts.

Querist : Anonymous

Querist : Anonymous (Querist)

31 October 2014 bcoz of abatement services rules and regulations in the service tax rules

Querist : Anonymous

Querist : Anonymous (Querist)

01 November 2014 Please give the answer of above

Annu Agarwal

Annu Agarwal (Expert)
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01 November 2014 yes,because of the abatement services rules.

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