Claim of service tax

This query is : Resolved

vishnu kumar (Querist)
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20 October 2011 A manufacturing concern in respect of one of its manufacturing plant has entered into agreement with consultant for installation of plant and machinery and their related electrical fittings.

Bill raised by consultant will include service tax which will be input service for this manufacturing unit.

Query is whether this service tax can be availed and utilised against excise duty liabilty arising out of manufacture. If not, can this input service tax can be availed and utilised for any other service tax liability(like unit has to pay service tax in respect of GTA)

Please support your answer citing legal provision

rajula gurva reddy

rajula gurva reddy (Expert)
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28 October 2011 Construction of plant machinery is an input service for a manufacturing firm as per the definition of input service under Cenvat Credit Rules. Accordingly, you can avail Cenvat Credit of Service TAx paid on construction services.