A Query:
A Company is a 100% EOU exporting Granites Slabs. It purchases Raw Materials within State and from out of State also. It pays Transportation charges on block Received. It also pays Service Tax on that GTA service on reverse Charge mechanism but only 25% (75% is abatement) and also claims CENVAT Credit on that. It also pays Freight Charges on finished goods moved from Factory to Port for Export.
Now my queries are:
1. Can that 100% EOU Company claim CENVAT Credit on Service Tax paid on GTA service even though it is availing 75% abatement? (When abatement is availed, CENVAT credit cannot be claimed. Correct me if I m wrong.)
Or,
Is there any provision for availing this CENVAT Credit?
2. Can that Company Claim refund for this CENVAT Credit or can it only set-off only against duty payable within DTA Sales (Sometime it sells Scraps in DTA )?
3. Is the company liable to pay Service Tax on Freight Outwards on finished Goods moved from Factory to Port for Export? If it is exempt, please provide related notification.
Please suggest with relevant case laws or notifications/circulars.
CAclubindia
