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Area based exemption

Service Tax - Started By: - AJAY AGRAWAL - Dated:- 30-7-2016 Last Replied Date:- 2-8-2016 - There are lots of manufacturing units availing & not liable to pay excise duty. I would solicit your valuable views on the aspect that can they accumulate service credit (being paid presently) & use it later on when the exemption is over? Further as presently they are not required for registration under excise (hence not required to file ER1) how they will justify their case. - Reply By KASTURI SE .....

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r providing taxable output service. Such issue is a challenge and must be accepted and fought. You can win the case after prolonged litigation and it may go up to the Apex Court. This is my view. - Reply By Ganeshan Kalyani - The Reply = Sir, Sri Kasturi Sir, in my view, if a unit is availing excise duty exemption then the unit is not eligible to take input credit. How can a department allow to enjoy exemption as well as claim credit of input associated with the exemption to be availed after the .....

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e ceases to be exempted _______________ (read further deeply). The analogy of these sub-rules of Rule 3 can lead to the destination of the querist who is expert with 20 years' experience. From the surface it appears that the querist cannot get benefit, but querist can get benefit at CESTAT level, High Court level or Supreme Court level. Such challenging cases should not be allowed to go out of your hands. An expert driver is he who drives its vehicle on bumpy/muddy road safely otherwise on s .....

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t be kept in dark. After all, an advocate or consultant is not the judge, he is only to plead the case on merits. Decision depends on the facts & circumstances of the case as well as luck of the assessee. - Reply By AJAY AGRAWAL - The Reply = Dear all, I would like all to consider the followings, to reach conclusion:- 1. The unit has exemption from Excise duty (not Service Tax) & they have to follow ST procedure. 2. Rule 3(2) of CCR 2004 talks of Cenvat on Inputs. I agree that I cant ava .....

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nputs lying on stocks only which are going to be used for producing a non-exempt product or which are used for providing a non-exempt service. But, during the period of exemption, the input service availed and used or inputs purchased and used for producing exempt product or providing exempt service and as such, in my opinion, the accummulation of input service tax credit during the period of exemption cannot be used for payment of excise duty or service tax on a product or service becoming non- .....

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