Service tax collection on excise invoice.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 March 2016 Ours is a manufacturing unit, and covered and registered under excise & service tax.

We have supplied items to our vendors with Tax Invoices raising excise for goods supplied . Further we have raised service tax on same invoice for freight paid on behalf of the party as the delivery of the item was at partys different sites. Further we have paid the such Service tax collected on freight charges from time to time.

Now the department asking to pay again the service tax collected as we can not raise service tax on excise invoices.

Kindly suggest clarification in the matter.

Guest

Guest (Expert)

05 March 2016 Sir,

If u see technically, the department is right as u cannot raise service tax on Excise invoice suggested by rule 11 of central excise rules.
But because of this transaction, the department is not losing any revenue. Hence u can request the department on merit basis and make an application to waive the same.