Cenvat Credit

This query is : Resolved

Ketan (Querist)
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22 December 2010 Dear All

I have the following question, needs expert opinion.

I have raised my bill of Rs. 3,00,000/- on which have charged S.Tax of Rs. 30,900.

Break up of Rs. 300,000/- is as under.

[Rs. 230,000 Fees + 70,000 for materials as unput which is re-imbursed from the party to whom I provide services(Rs. 63000 Material bill + Rs. 7000 excise on Rs. 63000 )+ 30,900 Service Tax)]

Now the question is can I Avail cenvat of Rs. 7000/- which I have paid as excise for material ?

If yes then have I to deposit S.Tax of Rs. 30,900-7000= Rs. 23,900? In this case a further query is that, I have remimbursed the entire amount of Rs. 70000/- from the party and moreover I am eligible for cenvat credit also? Is it proper?

Regards
Ketan M Pandya
ketan@jdca.in
98240 51280 - Experts may mention his cell no. so that I can call up and talk accordingly.