TMI Blogservice tax & Excise queryX X X X Extracts X X X X X X X X Extracts X X X X ..... We are a SSI manufacturer Service Provider of Maintenance Repair. we have a audit objection i.e we registered with Service Tax on 01-04-2014 after cross limit 10 lacs, then we take the service tax credit on rent of building other business auxiliary service aprox 0.72 lacs, then we cross the ssi exemption limit and registered with central excise on 20-10-2014. we regular take the credit on ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cise service tax. we pay the service tax on service providing by cash but not utilzed the service tax credit, year end we adjust the service tax credit on excise duty payment. audit team object that we can not take the credit utilized on service tax credit before central excise registration i.e oct-2014. kindly advice audit team is right or worng. vishal puri - Reply By MARIAPPAN GOVINDARAJA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... N - The Reply = There are case laws in which High Courts allowed to take credit for the payments even before the registration. - Reply By Rajagopalan Ranganathan - The Reply = Sir, You have registered yourself under Finance Act 1994 on 1.4.2014 since you had crossed the limit of 10 lakhs. You have registered under Central Excise Act, 1994 on 20.10.2014 after crossing the SSI limit of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 377; 1.5. crores. During the period between 1.4.2014 to 19.4.2014 the excisable goods manufactured by you were exempted. Therefore you cannot take credit of duty paid on inputs and service tax paid on input service which are utilized for manufacture of exempted goods. However you have earned a credit of 0.72 lakhs on input services received by you between 1.4.2014 to 19.10.2014 but you have not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... utilized the same and used it for payment of duty on excisable goods cleared on or after 20.10.2014. There is no prohibition for doing so either under Central Excise Law or Finance Act 1994 . Therefore what you have done is as per law. You may contest the audit objection. - Reply By MARIAPPAN GOVINDARAJAN - The Reply = A very lucid explanation, Sir - Reply By Ganeshan Kalyani - The Reply = ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sir, I am also of the same view as opines by Sri Rajagopalan Sir and Sri Mariappan Sir. The service is an input. It was used in or in relation to manufacturing activity. The final product is excisable. Only thing it was not crossing the threshold limit. Merely the turnover was not crossing the limit does not make the credit ineligible. The definition of input service is satisfying. The credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is eligible. Thanks. - Reply By Ganeshan Kalyani - The Reply = Sri Vishal Puri Ji, I have assumed in my reply that input service has a nexus with the manufacturing activity. Please validate my assumption. Thanks. - Reply By KASTURI SETHI - The Reply = Sh.Ganeshan Kalyani Ji, Your replies are in consonance with the reply of Sh.Ranganathan, Sir. All replies are leg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ally correct. It is natural that nexus is mandatory. From the query and penetrative reply by Sh.Ranganathan, Sir it is clear that all experts are correct. No room for doubt. - Reply By Ganeshan Kalyani - The Reply = Thanks for your support and appreciation. In fact your appreciation is an acknowledgement and remuneration to my effort. Thanks. - Reply By YAGAY AND SUN - The Reply = In support o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f our experts' view on this matter, we share following order of Tribunal: 2016 (9) TMI 536 - CESTAT KOLKATA Cement Manufacturing Company Versus Commr. of Central Excise Service Tax, Shillong In: Service Tax Dated:- 6-9-2016 Excise Appeal No. 1015/11 Service Tax Appeal No. ST/384/11 - Reply By KASTURI SETHI - The Reply = Thanks to M/s. Yagay and Sun, Experts for posting such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... useful case law promptly. - Reply By Ganeshan Kalyani - The Reply = Yes the cited case law would be helpful to Sri Vishal Ji, the credit is eligible anyway. Thanks. - service tax & Excise query - Query Started By: - VISHAL PURI Dated:- 13-9-2016 Service Tax - Got 10 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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