Discharging of service tax liability against Cenvat credit , Service Tax

[Manoj Kumar Sharma]

1. Can a mfg. co. discharge its service tax liability by debiting in Cenvat credit account ? Co. wants to avail 75 % abatement. Manoj

Posts / Replies

[Madhukar N Hiregange]

Availing the 75% deduction is possible as long as the declration of non availmentof credit / Not 12/2003 exists. It should be possible to utilise the cenvat credit for payment of the freight liability, however there maybe a question of how input services are used to pay for liability on input servcies. Practically we suggest to pay the same in cash and avail the credit immediately.