Cenvat credit of service tax

[Narasimha Subramanian]

We are into manufacturing and our products are excisable. Our price to our customer includes freight component also and we dont charge them seperately. We ship the material through courier to our customers and our courier bill has service tax charged to us. Can we take credit of this service tax charged by the courier company against the Excise Duty that is being paid? Please clarify.

AI Summary

Company Can Claim Cenvat Credit on Service Tax for Courier Services if Buyer's Premises is Place of Removal A manufacturing company inquired about the eligibility to claim Cenvat credit on service tax paid for courier services used to ship excisable products to customers. The company includes freight costs in the product price without separate charges. Two responses clarified that if the place of removal is considered the buyer's premises, the company can claim Cenvat credit on the service tax paid for courier services. This is contingent on including the freight component in the gross amount on which excise duty is charged.