Cenvat credit: principal manufacturers may claim credit when job workers charge service tax on intermediate processes. Where the principal manufacturer clears goods on payment of Central Excise duty, job work activities that are intermediate production processes are exempt from service tax and the job worker need not charge service tax; however, if a job worker does charge service tax on such intermediate processes, the principal manufacturer is entitled to take Cenvat credit of that service tax. A Central Excise Act stipulation mandating non-payment of excise on exempted goods does not by itself apply to service tax law.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Cenvat credit: principal manufacturers may claim credit when job workers charge service tax on intermediate processes.
Where the principal manufacturer clears goods on payment of Central Excise duty, job work activities that are intermediate production processes are exempt from service tax and the job worker need not charge service tax; however, if a job worker does charge service tax on such intermediate processes, the principal manufacturer is entitled to take Cenvat credit of that service tax. A Central Excise Act stipulation mandating non-payment of excise on exempted goods does not by itself apply to service tax law.
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