Service Tax payment through Excise Credit

This query is : Resolved

Tarun (Querist)
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08 September 2010 Dear all.
We have a Excise Credit angainst capital item as well as on raw material purchase.

Our current production is slow down and we are also doing labour work for other customer. In which we will made service charged invoice to our customer.

Now weateher we can utilise our those excise credit against payment of service tax aginst our service charged invoice? If yes that under which rule we can do this?

Your reply is helping me a lot.

Regards
Tarun Patel
Accountant
Shiv Engg - Vadodara

Pradeep Jain

Pradeep Jain (Expert)
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11 September 2010 As per Rule 3(4) of Cenvat credit Rules, you can utilise the cenvat credit lying with you for payment of service tax on output service also.