Cenvet credit

This query is : Open

CA Shruti Gupta (Querist)
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19 January 2013 Hi,
The query is our company is into service industry. we are having two units, one of which is 100% EOU and the other one is typically into providing services within India. As one unit (EOU) dont have output service tax, we get rebate under cenvat credit for the input service taxes. The other one (domestic) is having output service tax and we claimed cenvat credit on the input service taxes. For Ex: in case of export : Rs.1000 is turnover and the input service tax is Rs.100 and in case of domestic service, the output service tax is 120 and input service tax is 60. We claimed Rs 100 as rebate towards export (the input service tax paid) and we paid Rs. 60 after availing cenvat credit (120-60). Service Tax dept denied the claim on the basis assessee cant have both the benefits simultaneously. I would request you to help me out , if is there any case law available so that our claim can be sustained.

CA Chandra Kishore Bajpai

CA Chandra Kishore Bajpai (Expert)
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19 January 2013 can you let me know that under which rule tdepartment deny this procedure

CA Shruti Gupta

CA Shruti Gupta (Querist)
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21 January 2013 Under notification 12/2005 Rule 3. I have gone through the notification and as per the provision, cenvat cerdit should not be availed on the inputs of the rebate claimed for export.
We are not claiming any cenvat credit on the input services which is especially used for export. We are claiming cenvat on the domestic consumed services.
I would request you to suggest me any case law available in this particular circumstance.

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