can set off cenvat excise agst the service tax

This query is : Resolved

sachin (Querist)
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19 August 2010 Hi,

As we are paying service tax which is collected in sales invoice , and purchsed some vehicle and that inclusive of cenvat excise 10.30% & also vat . Can we get set off at the time of payment of service tax after deducting the cenvat excise which was paid at the time purchasing vehicle? pls provide suggestion & also some supports from notes on that matter. as the output was generated form shipping income & input of cenvat is generated from bulker vehicle which was used for transport businee by road , so get the set off this

CA PRAMOD SARAOGI

CA PRAMOD SARAOGI (Expert)
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20 August 2010 Output Service provided by you should have a nexus with the purchase of vehicle. Then only you are allowed to take the credit of the Excise duty paid by you on the vehicle. However if the vehicle is a car then you are not allowed to take the Cenvat Credit. Only for providing certain specified output services Cenvat Credit on Car is aloowed