CENVAT credit to Port or Dredging

Queries 2157 views 3 replies

Kiran Kumar V

C.A. Final

181 Points Joined November 2008

Hello Frields this is Kiran, I have a doubt regarding Cenvat Credit.

A Company engaged in port and dredging services, can this company avail the benefit of cenvat credit on input duty.

If there is any provision with respect to aforesaid query please post your answer with sections or rules as the case may be.

If there is any case laws regarding port and dredging services please quote it.

Regards,

Kiran Kumar V

Replies (3)

Rajesh Kumar

Advocate- Tax

7806 Points Joined December 2008

Any service provider providing any output service (in this case port & dredging service) can avail cenvat credit of duty paid on inputs/capital goods/input services.

Rg.ramachandran

15 Points Joined March 2007

Originally posted by :kiran

Hello Frields this is Kiran, I have a doubt regarding Cenvat Credit.
A Company engaged in port and dredging services, can this company avail the benefit of cenvat credit on input duty.
If there is any provision with respect to aforesaid query please post your answer with sections or rules as the case may be.
If there is any case laws regarding port and dredging services please quote it.
Regards,
Kiran Kumar V

Request to please note one of the leading case -

2008(07)LCX0150

In the Customs, Excise & Service Tax Appellate Tribunal, Chennai

Shri P.G. Chacko, Member (Judicial) Shri P. Karthikeyan, Member (Technical)

Tuticorin Port Trust

Versus

Commissioner of Central Excise & Service Tax, Tirunelveli And Vice Versa

Final Order Nos. 692-693/2008 and Stay Order No. S/611/2008 dt. 10.7.2008 certified on 10.7.2008 in Application No. S/Stay/179/2007 and Appeal Nos. ST/238, 241/2007

Summary of case: $

Appellant took CENVAT credit on dredging services provided, but, when objected by an audit party of department, reversed credit. No evidence of utilisation of any input service tax credit, demand cannot be sustained. Default not brought against appellant. Penalty set aside. Appeal of revenue rejected. (Para.2)