Input service tax

This query is : Resolved

Vasantha Kumar Reddy (Querist)
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23 February 2008
Facts:We are in the manufacturing of bulk drugs. We are hiring the vehicles for transportation of our employees and some times used for guests travelling to the factory visit.We have been paying the service tax on vehicle hire charges.

Can i take the input credit of the service tax paid on hire charges?

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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23 February 2008 If the transportation is connected with your manufacturing place then you can.

CA Saurabh Maheshwari

CA Saurabh Maheshwari (Expert)
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23 February 2008 YES IF RELATED WITH THE BUSINESS i.e MANUFACTURING

jegannath G

jegannath G (Expert)
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23 February 2008 Yes you can

Vasantha Kumar Reddy

Vasantha Kumar Reddy (Querist)
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25 February 2008 Thank you very much for your early response.
I have argued with the authorities that the activity is related to the business i.e emplyees trvelling to the work place and hence we have taken the cenvat credit.

But the excise authorities in their EA Audit 2000, asked me to reverse the service tax credit, which i was utilised earlier.

What is the recousrse available to me?

shyam kishor porwal

shyam kishor porwal (Expert)
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26 February 2008 Same benefit is available in CCR and some case have also been decided by SC. If you prooved that same is related to manufacturing. same will be allowed.

Vasantha Kumar Reddy

Vasantha Kumar Reddy (Querist)
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26 February 2008 Thank you Mr. Shyam.
Can you provide me the detailed case study, if possiable.

MANAS ROUT

MANAS ROUT (Expert)
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01 March 2008 whether the service is directly or indirectly related for manufacturing or providing output service you can take as input for your cenvat payble.

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