ST credit for Trading Goods

This query is : Resolved

rutambh (Querist)
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17 April 2011 We are manufacturing of pharmaceutical products.

We have dispatch two type of finished goods.:

1. Self Manufacturing Product (Sale pack and PS pack )
and
2. Third Party Purchase Product (Excise duty exempted and Excise duty paid)
(Sale pack and PS pack)

Both the products we are transfer at Bhiwandi Godown from Sihor (Bhavnagar).

Also some third party product (Sale pack and PS pack ) are received at Bhiwandi directly.

From Bhiwandi godown, we are dispctch the both type of Finished Goods means,

1. Self Manufacturing Product (Sale pack and PS pack )
and
2. Third Party Purchase Product (Excise duty exempted and Excise duty paid)
(Sale pack and PS pack)

through Express cargo like Gati , Safexpress with single Docket means one consignee one Docket.

They are chrgeing service tax and after payment to Gati and safexpress we have taken service tax credit on Input Service Distributor Invoice received from our head office :

My Queries are….

We are taken total service tax credit means both type of Finished goods.

Or we can take service Tax credit for self manufacturing goods related only (not trading goods) ?

rajula gurva reddy

rajula gurva reddy (Expert)
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21 April 2011 You can avail Cenvat Credit of Service TAx paid on the freight used for transport of inputs received into the factory and also up to depot/consignment agent's premises. In respect other outward transport,the issue is still in the court though Some CESTATs allowed credit.