cenvat credit of inward transportation service tax for the
This query is : Resolved
24 March 2009
plz advice me...
we are a manufacturer of LAM Coke. our final product is exempted from the excise duty. now my point is that we sold the goods Ex-Plant Rate.& on behalf of the purchaser we arranged the transportation & also paid the Transportation & service tax(25 %of transportation s.t. paid) on transportation by us. & another side we purchase the raw material, paid the transportation & service tax for inward transportation. now plz ADVISE ME that may I avail & utilise A CENVAT CREDIT OF SERVICE TAX WHICH PAID ON THE INWARD TRANSPORTATION for the payment of SERVICE TAX PAYABLE ON OUTWARD TRANSPORTATION.
plz advise me & may i avail this benefit for the last year i.e. 2007-08.
thanking you,
regards
sandip bhogayta
we are a manufacturer of LAM Coke. our final product is exempted from the excise duty. now my point is that we sold the goods Ex-Plant Rate.& on behalf of the purchaser we arranged the transportation & also paid the Transportation & service tax(25 %of transportation s.t. paid) on transportation by us. & another side we purchase the raw material, paid the transportation & service tax for inward transportation. now plz ADVISE ME that may I avail & utilise A CENVAT CREDIT OF SERVICE TAX WHICH PAID ON THE INWARD TRANSPORTATION for the payment of SERVICE TAX PAYABLE ON OUTWARD TRANSPORTATION.
plz advise me & may i avail this benefit for the last year i.e. 2007-08.
thanking you,
regards
sandip bhogayta
24 March 2009
GTA service has been excluded from the perview of Output service wef. 01.03.08.
Since Cenvat can be utilised only towards payment of service tax on output services, you can not utilise the same towards payment of tax on GTA.
Since Cenvat can be utilised only towards payment of service tax on output services, you can not utilise the same towards payment of tax on GTA.
24 March 2009
This is absolutely not permissible.
Moreover you product is exempt, therefore this itself does not allow you to take the input credit.
If this condition prevails, there is no question of you utilising the same for output GTA.
Please refer the master circular, which does not allow such utilisation.
Moreover you product is exempt, therefore this itself does not allow you to take the input credit.
If this condition prevails, there is no question of you utilising the same for output GTA.
Please refer the master circular, which does not allow such utilisation.
25 March 2009
dear all ,
first i thanks to all for give ur suggestion.
but requested to all to refer to the case of INDIA CEMENT LTD. regarding this matter in this matter tribunal give a right to take a credit agst. payment of service tax
first i thanks to all for give ur suggestion.
but requested to all to refer to the case of INDIA CEMENT LTD. regarding this matter in this matter tribunal give a right to take a credit agst. payment of service tax
25 March 2009
Payamet of service tax, if an input service, is permitted to be taken as cenvat credit.
The credit can be utilised for payment of excise duty on manufacture and / or for paymant of service tax on output service.
If the service is not an output service, cenvat can not be utilised.
If you can provide the case referred by you, that can be distinguished.
The credit can be utilised for payment of excise duty on manufacture and / or for paymant of service tax on output service.
If the service is not an output service, cenvat can not be utilised.
If you can provide the case referred by you, that can be distinguished.
26 March 2009
GTA Service - Cenvat Credit - It is convention that when matter is referred to Larger Bench, Stay of recovery of amount is granted and there is no reason to deviate from such convention : Tribunal
By TIOL News Service
MUMBAI, DEC 18, 2007 : IN the case of India Cements Ltd. [ 2007-TIOL-1248-CESTAT-BANG ], the Tribunal came to the conclusion that the transportation from the factory to the destination of the buyer becomes an 'outward transportation' & accordingly in terms of Rule 2(1)(ii) [First limb], this service becomes an 'Input Service' meaning to say that credit was available. However, since this view was at variance with the interpretation carried by the co-ordinate Bench of Tribunal in the case of Gujarat Ambuja Cement [ 2007-TIOL-539-CESTAT-DEL ] , the matter was referred to the Larger Bench for resolving the issue.
Probably, the assessee Inox Air Products [ 2007-TIOL-1829-CESTAT-MUM ], whose case we had reported earlier, were unfortunate when their appeal, on a similar issue, had come before the WZB because they were ordered to make a pre-deposit of Rs 1,25,000/-. This despite the fact that the Tribunal has in the case of Capital Paper Mills [ 2002-TIOL-384-CESTAT-DEL ] held that when the matter is sub judice before the Larger Bench, waiver of pre-deposit of duty and Stay of the recovery is required to be granted & that this was the practice in such cases as mentioned by the Tribunal in the case of Uni Products (India) Ltd. [ 2002-TIOL-388-CESTAT-DEL ] .
Fortunately, in the case of the Cement company that we are reporting today, the Tribunal observed that the dispute stood referred to the Larger Bench in the India Cements Ltd. case and hence the application for pre-deposit of amounts involved was allowed & the recovery thereof stayed till the disposal of the appeal.
Such a direction, the Tribunal observed, is the convention when the matter is referred to a Larger Bench and there was no reason to deviate from such a convention.
By TIOL News Service
MUMBAI, DEC 18, 2007 : IN the case of India Cements Ltd. [ 2007-TIOL-1248-CESTAT-BANG ], the Tribunal came to the conclusion that the transportation from the factory to the destination of the buyer becomes an 'outward transportation' & accordingly in terms of Rule 2(1)(ii) [First limb], this service becomes an 'Input Service' meaning to say that credit was available. However, since this view was at variance with the interpretation carried by the co-ordinate Bench of Tribunal in the case of Gujarat Ambuja Cement [ 2007-TIOL-539-CESTAT-DEL ] , the matter was referred to the Larger Bench for resolving the issue.
Probably, the assessee Inox Air Products [ 2007-TIOL-1829-CESTAT-MUM ], whose case we had reported earlier, were unfortunate when their appeal, on a similar issue, had come before the WZB because they were ordered to make a pre-deposit of Rs 1,25,000/-. This despite the fact that the Tribunal has in the case of Capital Paper Mills [ 2002-TIOL-384-CESTAT-DEL ] held that when the matter is sub judice before the Larger Bench, waiver of pre-deposit of duty and Stay of the recovery is required to be granted & that this was the practice in such cases as mentioned by the Tribunal in the case of Uni Products (India) Ltd. [ 2002-TIOL-388-CESTAT-DEL ] .
Fortunately, in the case of the Cement company that we are reporting today, the Tribunal observed that the dispute stood referred to the Larger Bench in the India Cements Ltd. case and hence the application for pre-deposit of amounts involved was allowed & the recovery thereof stayed till the disposal of the appeal.
Such a direction, the Tribunal observed, is the convention when the matter is referred to a Larger Bench and there was no reason to deviate from such a convention.
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