skdubey_cma (n/a) 25 January 2008

cenvat credit of service tax paid by a manufacturer

A manufacturing unit appoint several consignment agents in many states, send stocks to them, they sale the goods, collect the sale proceedings and send sale amount to the manufacturer after deducting his consignment commisssion along with service tax paid by him.

Qu.(1): Whether manufacturer avail Cenvat Credit of service tax paid by his consignment agent and utilise the same for paying central excise duty on his finished goods?

Qu.(2): if yes, What are eligible documents for claiming cenvat credit?

Qu.(3): whether any case law on this topic?

Reply Follow

5 Replies

skdubey_cma (n/a) 01 February 2008

Thank you for your valuable comment.

Shambasiv (n/a) 26 January 2008

Cevat credit may be taken on the baisis of the invoice issued by a manufacturer of inputs or capital goods from his factory or from his depot or from the premises of the consignment agent or from any other premises from where the goods are sold by or on behalf of the said manufacturer

skdubey_cma (n/a) 28 January 2008

Dear,

please read my matter carefully, this is not matter of input credit.

thanks for your reply

yours truly

SKD_CMA

Shambasiv (n/a) 30 January 2008

Yes Manufacturer will avail cenvat credit on service tax paid by consigment agent. Document required- 1. Invoice having all prescribed particular in the name of manufacturer. 2. this is covered in Definition of input service

Rakesh Chitkara (Service Tax Consultant) 25 May 2008

Query is whether credit of service tax paid on post clearance activity can be utilized for future payment of excise duty to clear goods from the factory ? Will be grateful if you could enlighten me if you have found some solution. Department is taking a creative approach in interpreting it differently.