Can excise duty setoff against service tax liabilty?

This query is : Resolved

Dicson (Querist)
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10 July 2014 An assessee running a hospital. Service tax liability arise for the period fy.2010-11.

They purchased some medical equipment during the period.

Can they adjust that EXCISE DUTY against the service tax liability.

Plz post the solution with relavant provisions / notifications.

1. Service tax can be setoff with excise duty?
2. What are the conditions to be satisfied for theat?

CA Pradeep Sharma

CA Pradeep Sharma (Expert)
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10 July 2014 Yes, Excise duty can be adjust against service tax liability.

According to Rule 3(4)(a) of CENVAT CREDIT RULES' 2004

CENVAT CREDIT can be utilised against

duties of excise

and vice versa