Cenvat credit admissibility

This query is : Resolved

CA Sanjay Baheti (Querist)
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03 May 2013 My client being a Pvt.Ltd.Co.engaged in manufacturing activities & also covered under Excise as well as Service Tax.The company paid service tax on freight inwards for inputs & also on Freight outwards for Export/Domestic Sales.The taxable value of services are 25% of total Freight inwards/Outwards & then ST %12.36% thereon paid.

Now query is as
i) whether such ST paid on Freight inwards are eligible as Cenvat credit so far Excise Return is concerned.
ii) whether such ST paid on Freight outwards are also eligible as Cenvat credit so far Excise Return is concerned.

iii) whether Service tax paid on Laboratory Testing Charges towards testing of Inputs as well as samples/Finished Goods are also claimed as cenvat credit so far Excise Return is concerned.

Regards.

CA SANJAY BAHETI

Ashish Vaish

Ashish Vaish (Expert)
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03 May 2013 You can avail the cenvat of ST paid on inward freight and Lab Testing charges of inputs. Cenvat of ST paid on outward freight is a very disputed issue. Its credit is available only in some special circumstances now. For eg: you are eligible in case your transactional value includes such freight.