Regarding eligibility for availment of cenvat credit

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This query is : Resolved

CA.Anand Jain (Querist)

12 May 2013 My client is a manufacturing concern and he pays Service Tax @ 3.60% on Rail Freight for purchasing Raw material on transportation.
The client also pays excise duty on his Finished Goods. Is the credit of Service Tax paid on Rail freight eligible for Cenvat Credit against Excise duty payable on Finished Goods manufactured in factory?

CA.Anand Jain

CA.Anand Jain (Querist)

13 May 2013 My client is a manufacturing concern and he pays Service Tax @ 3.60% on Rail Freight for purchasing Raw material on transportation. The client also pays excise duty on his Finished Goods. Is the credit of Service Tax paid on Rail freight eligible for Cenvat Credit against Excise duty payable on Finished Goods manufactured in factory?

CA Vikas Acharya

CA Vikas Acharya (Expert)

13 May 2013 allowed, only if the material falls wihtin the definition of 'input' under rule 2(a) of ccr.

because as per rule 2(l) of ccr credit of input service is allowed of following-
Inward transportation of INPUT and outward transportation upto te place of removal

CA.Anand Jain

CA.Anand Jain (Querist)

13 May 2013 Is credit also available if raw material is purchased through first stage dealer.
The first stage dealer has not taken credit of such duty.

CA Vikas Acharya

CA Vikas Acharya (Expert)

13 May 2013 allowed if you paid the duty..

CA.Anand Jain

CA.Anand Jain (Querist)

14 May 2013 Thanks vikas ji