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List of services Eligible for CENVAT Credit

Service Tax - Started By: - Rudrayani Shedjale - Dated:- 6-6-2015 Last Replied Date:- 10-6-2015 - HiWe are the manufacturer of API(Active Pharma Ingredient). we file the ER1 returns.previously we have taken credit of entire service tax borne by us.Services includes as :- Security(at factory premises), [Custom Clearance ,Transport,Terminal Handling Charges,ADC charges- these are provided by our CHA] Material Testing Pest Control(at factory premises) Commission(for assisting into sales) Courier (f .....

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ion service. However there are two contrary judgments, one of Gujarat High court and another of Punjab and Haryana High Court. While Gujarat High court has held that Commission Agent Service is not input service in the case of CCE vs. Cadila Healthcare 2013 (1) TMI 304 - GUJARAT HIGH COURT= [2013 (30) STR 3 (Guj. H.C.)] but Punjab and Haryana High Court has held in the case of CCE vs, Ambika Overseas 2011 (7) TMI 980 - PUNJAB & HARYANA HIGH COURT=[2012 (25) S.T.R. 348 (P & H)] = the same .....

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Point 5 of CBEC's Circular 943/04/2011-CX dated 29.4.2011 the definition of input services allows all credit on services used for clearance of final products up to the place of removal. Moreover activity of sale promotion is specifically allowed and on many occasions the remuneration for same is linked to actual sale. Reading the provisions harmoniously it is clarified that credit is admissible on the services of sale of dutiable goods on commission basis. In respect of Courier Service and .....

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rehouse. so does that fall in the definition of input services ? - Reply By CS SANJAY MALHOTRA - The Reply = Dear Rudrayani, CENVAT Credit of Input Services (Rule 2L of CCR 2004) is allowed for services used in relation to goods upto the PLACE OF REMOVAL . Notification No. 41/2012-Service Tax dated 29.06.2012 provides for Refund of specified services which are used beyond the place of removal. (a) the rebate shall be granted by way of refund of service tax paid on the specified services.

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f clause (l) of rule (2) of the CENVAT Credit Rules, 2004; (B) place of removal shall have the meaning assigned to it in section 4 of the Central Excise Act,1944(1 of 1944); Refer Notification No. 21/2014-CE dated 11.07.2014 which elaborates definition of Place of Removal In case of Physical Exports taking place out of India, ICD / Gateway Port is the Place of removal as the goods are sold when B/L is issued. Notification No. 21/2014-CE dated 11.07.2014 2. In the CENVAT C .....

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xcisable goods are to be sold after their clearance from the factory, from where such goods are removed;‟ Submission: Commission is in the nature of Sales Promotion activity and is specifically mentioned in the Inclusive part of Input Service definition, hence CENVAT Credit is admissible. Courier Services, one has to correlate whether the same has taken place after the B/L is issued i.e. clearance of goods from Port, if Yes, then No CENVAT allowed. CHA Services includes various aspects suc .....

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r disallowed depending upon the performance of activity and its linkage with Place of Removal definition. It's always advisable to apply for Service Tax Refund or to claim Service Tax Drawback to avoid any litigation. regards - Reply By Rudrayani Shedjale - The Reply = Dear SirCHA has charged service tax on Customs clearance & Transport, Terminal Handling Charges, B/L Charges,ADC Charges.Courier charges are those which are incurred for sending samples (product samples) to customer & .....

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