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About cenvat credit

jyoti (article assistance) (61 Points)

28 August 2012

i m running a manufacturing concern and i have paid service tax on advocate's bill for the purpose of merger & acuisition a year ago. can i take a credit of that service tax agaist excise duty or any other allowable tax ?

how your answer change if merger is done 1 month ago ???

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3 Replies

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 28 August 2012

such fees is administrative nature and can not be classified as input ,

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jyoti (article assistance) (61 Points)
Replied 29 August 2012

Originally posted by : U S Sharma
	such fees is administrative nature and can not be classified as input ,

In input Service 's Definition, it is written that u can also take credit of Advertisement & sales promotion , repairs & maintanance of Factory or service provider's premises. and the merger is also taken palce fo the some benefits. and is also like promotion then also we cannot take credit of it ????

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 29 August 2012

Rule 3. CENVAT credit. ---(1) A manufacturer or producer of final products or a provider of taxable service shall be allowed to take credit (hereinafter referred to as the CENVAT credit) of –

(i)	the duty of excise specified in the First Schedule to the Excise Tariff Act, leviable under the Excise Act;
(ii)	the duty of excise specified in the Second Schedule to the Excise Tariff Act, leviable under the Excise Act;
(iii)	the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Textile and Textile Articles) Act,1978 ( 40 of 1978);
(iv)	the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 ( 58 of 1957);
(v)	the National Calamity Contingent duty leviable under section 136 of the Finance Act, 2001 (14 of 2001);
(vi)	the Education Cess on excisable goods leviable under section 91 read with section 93 of the Finance (No.2) Act, 2004 (23 of 2004);
(via)	the Secondary and Higher Education Cess on excisable goods leviable under section 136 read with section 138 of the Finance Act, 2007 (22 of 2007);
(vii)	the additional duty leviable under section 3 of the Customs Tariff Act, equivalent to the duty of excise specified under clauses (i), (ii), (iii), (iv), (v) (vi) and (via);
(viia)	the additional duty leviable under sub-section (5) of section 3 of the Customs Tariff Act,
Provided that a provider of taxable service shall not be eligible to take credit of such additional duty;
(viii)	the additional duty of excise leviable under section 157 of the Finance Act, 2003 (32 of 2003);
(ix)	the service tax leviable under section 66 of the Finance Act;
(x)	the Education Cess on taxable services leviable under section 91 read with section 95 of the Finance (No.2) Act, 2004 (23 of 2004); and
(xa)	the Secondary and Higher Education Cess on taxable services leviable under section 136 read with section 140 of the Finance Act, 2007 (22 of 2007); and
(xi)	the additional duty of excise leviable under section 85 of Finance Act, 2005 (18 of 2005 )
Provided that the CENVAT credit shall be allowed to be taken of the amount equal to central excise duty paid on the capital goods at the time of debonding of the unit in terms of the para 8 of notification No. 22/2003-Central Excise, published in the Gazette of India, part II, Section 3,sub-section(i),vide number G.S.R. 265(E), dated, the 31st March,2003. paid on-
(i)	any input or capital goods received in the factory of manufacture of final product or premises of the provider of output service on or after the 10th day of September, 2004; and
(ii)	any input service received by the manufacturer of final product or by the provider of output services on or after the 10th day of September, 2004,

https://www.cbec.gov.in/excise/cxrules/new-cenvat-rules.htm

if your such service qualify as "input service" which is required to perform taxable output service, or required in manufactuing of "taxable goods on which ED is payable" then only you can be eligible for input credit.