input service credit - applicable or not - please guide

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hardeep (Querist)
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10 May 2011 Dear sir(s)

Please reply on the following :

We are purchasing/procuring excisable goods without payment of excise duty for export under CT-1 bond . The goods were in natural colour.

Further we are getting these goods zinc plated from a job worker. Job worker charging us service tax in his bill.

Please guide me - whether this service tax is eligible as input service credit. Can we take credit of this service tax.

please reply.

Thanks and regards.

Hardeep

CA Unnikrishnan Nair N

CA Unnikrishnan Nair N (Expert)
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10 May 2011 The input service is business auxiliary service not qualifying for refund under Noti.17/2009. But you can claim cenvat credit for set off against your duty liability for domestic clearance if any.

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