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Cenvat credit of freight paid by principal contractor

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Querist : Anonymous

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Querist : Anonymous (Querist)
03 September 2013 Inputs are directly delivered by suppliers to works contractor, but freight and service tax on it is paid by the principal manufacturer, can principal manufacturer avail CENVAT Credit of service tax so paid by him?
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Arun Kumar Singh

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Arun Kumar Singh (Expert)
03 September 2013 Yes, principal manufacturer can take the cenvat credit on duty paid by reverse charge systems.
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Querist : Anonymous

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Querist : Anonymous (Querist)
03 September 2013 is there any notification for the same or under which section or under which rule, can he avail such credit?
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