Service tax Credit on Capital goods, Service Tax

[Samir Shah]

One of my client has invested in Windmill Project. The supplier has charged nearly Rs. 4.00 lacs as service Tax. Client is in business of Mfg. of engraved rollers. Its factory is in Ahmedabad. Wind Mill is at Jamnagar. He gets credit in his electricity bills for the units generated by his wind mill at jamnagar. Can he get credit of Service Tax cosidering the investment in wind mill as Capital Goods.

Posts / Replies

[Surender Gupta]

You can adopt the procedure of Input Service Distributor if input services received at Jamnagar is utilized for manufacturing of Engraved Rollers and sbject to other provisions of the Cenvat Credit Rules, 2004.