Cenvat credit against service tax payable

sir i have 15 truck. 2 grader , 2 excevator etc machinary for our mining purpose.

i have register with service tax number for mining service.

i have purchase tyre, oil, gress and sparepart for above machinary with excise register menufacture or dealar and received bill with excise.

so sir can i take cenvat credit this excise against service tax payable?

if yes or no, why?

pls give me a notification or rules.

Replies (2)

As far as trucks are concerned, you should have been registered under GTA availing the benefit of 75% abatement. No cenvat credit is available in respect of inputs/input services used for GTA.

In respect of other machineries, you can avail cenvat credit provided you maintain separate records. Else Rule 6 shall appy

"capital goods" means:-

(A) the following goods, namely:-

(i) all goods falling under Chapter 82, Chapter 84, Chapter 85, Chapter 90,1[heading 6805, grinding wheels and the like, and parts thereof falling under heading 6804]1 of the First Schedule to the Excise Tariff Act;

(ii) pollution control equipment;

(iii) components, spares and accessories of the goods specified at (i) and (ii);

(iv) moulds and dies, jigs and fixtures;

(v) refractories and refractory materials;

(vi) tubes and pipes and fittings thereof; and

(vii) storage tank,

used-

(1) in the factory of the manufacturer of the final products, but does not include any equipment or appliance used in an office; or

(1A) outside the factory of the manufacturer of the final products for generation of electricity for captive use within the factory; or

(2) for providing output service;

(B) motor vehicle registered in the name of provider of output service for providing taxable service as specified in sub-clauses (f), (n), (o), (zr), (zzp), (zzt) and (zzw) of clause (105) of section 65 of the Finance Act;

(C) dumpers or tippers, falling under Chapter 87 of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), registered in the name of provider of output service for providing taxable services as specified in sub-clauses (zzza) and (zzzy) of clause (105) of section 65 of the said Finance Act;

(D) components, spares and accessories of motor vehicles, dumpers or tippers, as the case may be, used to provide taxable services as specified in sub-clauses (B) and (C);

If you fall under above category of service, you can take credit on your trucks.  Otherwise no.

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