Service tax input credit....for payment of excise duty...urg

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This query is : Resolved

Rajesh (Querist)

27 December 2012 Respected Experts,
We are a manufacturing company and we have to pay excise duty for the goods being manufactured.

Can we take service tax input credit on service tax paid on Transportation outwards for payment of excise duty?

Please quote the relevant section for this

Thanks & Regards,
Rajesh

CA Rutvij

CA Rutvij (Expert)

28 December 2012 On outward fright, CENVAT is not available.

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Kaushik Vinod

Kaushik Vinod (Expert)

28 December 2012 Hi Rajesh,

As per Rule 2(l) of CCR,2004 the inclusive part of the definition of Input Service item No. 19
13[(l) "input service" means any service,—
(i) used by a provider of 13a[output service] for providing an output service; or
(ii) used by a manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products upto the place of removal and includes services used in relation to outward transportation upto the place of removal.

Crux: Transportation up to the place of removal is allowed as Input Service to a Manufacturer also.

Thanks

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CA Rutvij

CA Rutvij (Expert)

28 December 2012 Yes, upto the place of removal only cenvat available.

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