My client is a First Stage Dealer Registered under Excise Act. He is engaged in normal trading of Iron & steel Goods & no other goods or services are provided by him. But he is regularly filing Cenvat Return & takes the credit of service tax charged by Telecommunication Co., Banks, Security Service. But according to me the definition of service provide under sec.2(l) states that for trader there is nothing like Input Service. So is my client justified in taking CCR of Service tax by the way of refund every year ?
The first stage dealer is registered under central excise and he is liable for excise duty. First Stage Dealer can get the credit of input service tax.
But in the definition of input service provider there is no mention of FSD/SSD. It only mentions manufacturer or Service provider. Rule 2(l) of CENVAT Credit Rules, 2004 defines the term ‘input service’ as any service-
used by a provider of taxable service for providing an output service; or used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products up to the place of removal,
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