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CENVAT AVAILAMENT, Service Tax

Issue Id: - 110327
Dated: 10-5-2016
By:- RAMESH ANANTHAKRISHNAN

CENVAT AVAILAMENT


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Dear Sir,

We are in synthetic filaments filed. We produce both exempted as well as dutiable final product. Whenever we produce dutiable finished goods we avail CENVAT credit on the inputs (raw material alone). During the operation we engage contract labours , securities, transport services for which we paid sizeable amount of service tax. Since we produce dutiable and exempted products (Notification 30/2004) we can't distinguish the services related to dutiable as well as exempted products production. Therefore except Raw material we do not avail CENVAT credit for service related matters. Kindly advise whether we can take service tax credit.

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Showing Replies 1 to 2 of 2 Records

Page: 1


1 Dated: 10-5-2016
By:- KASTURI SETHI

SH.RAMESH ANANTHAKRISHNAN,

You can take cenvat credit of Service Tax paid on input service and utilise the same for payment of Central Excise duty. Since you are manufacturing dutiabe and exempted goods you are required to follow the procedure laid down in Rule 6(3) of Cenvat Credit Rules, 2004 for reversal of Cenvat Credit involved on common inputs.


2 Dated: 10-5-2016
By:- Ganeshan Kalyani

I agree with Sri Kasturi Sir. If the input is commonly availed for both dutiable and exempt goods then reversal of credit is required as per the rule mentioned by Sri Kasturi Sir. Thanks.


Page: 1

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