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prateek aanchalia (Querist)

08 March 2013 Dear All
i want to know that if any company directly purhcase an product from that palace which are fully exempted from excise duty.i.e. company purchase an finished product on that no excise duty charged.
for that product company incurred sales promoration expense like advertisement exp.
on that advertisement expenses serivce provider charged service tax. same will be paid by the company.
now my question is on that service tax portion company eligible for service tax credit.
if yes than on what ground it is possiable.

becasuse also argued that they doing trading of that product.
i m also share that this product packed in as per company specific requirement and for that product company also registered in brand.
so please prvided me yout valueble suggestion.
have a nice day.

Kishanlal Paliwal

Kishanlal Paliwal (Expert)

09 March 2013 An assessee can take cenvat credit against service tax paid and utilise for (a) Payment of Excise duty, (b) Output Service.

But in the given case we understand that the business deals with excise exempted goods.

Trading of excise exempted/paid goods also do not attract any liability until opt for issue of cenvat invoices.

It does not impact on liability of excise duty to affix any brand/marka until the manufacturing/processing unit is exempted under any law or conditions under laws or covered under SSI service provider.

Hope I could able to solve it.

Regards
K.L.Paliwal

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