CENVAT CREDIT ON SERVICE TAX PAID ON WARRANTY SERVICE

[RAMAPPA SOMAKKALAVAR]

Dear Sir.

we are the manufacturer of small commercial vehicles and we are selling our vehicles to our authorized dealers. As a condition of sale the dealer is giving free warranty service to end customers and for which dealer is recovering cost of service along the with service tax from us(Manufacturer)

• Can we avail cenvat credit on dealer bill  
• we have taken marine insurance policy which is covering all vehicles sold to dealers in transit. we are recovering the premium amount proportionately from the dealer through billing. can we take the service tax cenvat credit on insurance premium paid for marine policy.
• manufacturer has warranty failed parts in their factory and again sending those warranty failed parts to original supplier for analysis purpose (Reason of failure). while sending those failed parts from our factory (Manufacturer) shall we need to pay excise duty on this.

Please suggest on this.

Regards

RAMAPPA SOMAKKALAVAR

AI Summary

Manufacturer Queries CENVAT Credit Eligibility on Warranty Services, Marine Insurance & Excise Duty on Returned Parts Under Cenvat Credit Rules, 2004. A manufacturer of small commercial vehicles is inquiring about the eligibility to claim CENVAT credit on service tax paid for warranty services provided by dealers, as well as on marine insurance premiums for vehicles sold to dealers. Additionally, they seek guidance on whether excise duty is applicable when sending warranty-failed parts back to the original supplier for analysis. Two respondents confirm that CENVAT credit can be availed under the Cenvat Credit Rules, 2004, for these business-related expenses.