Availing CENVAT INPUT credit on OPS provided

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

12 June 2010 Respected sir/ma`am,
i wish to know whether CENVAT CREDIT on INPUT(i.e excise duty paid on purchase of materials) can be availed by a Works Contractor (providing Supply & Erection services to Powergrid Corp of India) against his OPS(sevice tax liability on Erection services)

Details of Case : Our Client is not registered under Central Excise, but only Service tax and they undertake Railway electrification, Transmission line erection and Hige voltage substation erection for Powergrid Corporationj of India. Client Purchses material from manufacturers (which includ Excise duty) but doesnt avail the same against its Service Tax liability. Please guide me in this regard.

Thank you.

CA KISHORE VANAMA

CA KISHORE VANAMA (Expert)
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15 June 2010 Hai ur client can avail cenvat credit on the inputs used for the pupose of providing services