Service
65 Points
Joined April 2013
Credit of EC and SHEC is paid at the time of import of CG which is used for providing Taxable output service can be availed under rule 3 of CCR, 2004.
Credit of the EC and SHEC may be utilised for the payment of EC and SHEC on output service provided.
However, proviso inserted in sub rule (7) of the Rule 3 of the said rules which allow the credit of EC and SHEC paid on CG which is received in the premises of provider of output services on or after 01.06.2015 may be utilised for the payment of service tax on output service.
Further, reason to insert this proviso was subsuming of EC and SHEC in the rate of service tax and Excise only. If you interpret this proviso laterally then credit may be availed in your case. However, logical interpretation of the same would not allow credit of EC and SHEC for the payment of Service tax on output service provided.