Service Tax Credit

In this case, your firm is liable to pay service tax only on account of Feight inward / frieght outward (which is covered under GTA Service). GTA service or technically saying, "transportation of goods by road through roads carriage" is a reverse charge service. For such service Cenvat Credit can not be utilized for the payment of its liablity. Therefore, the cenvat credit which you have availed can be utilized for the payment of your excise duty liability or can be claimed as refund. But it CAN NOT be utilized for payment of service tax liability of on account of frieght. For this your firm has to pay it by cash/cheque through GAR7 form Regards, Ajay Gumbar.

by virtue of a recent ruling, contrary to general understanding, cenvat credit can be utilised for paymant of service tax on GTA service as well. There is no provision for refund of unutilised cenvat credit.