Service Provider, who is having authroised Service station for car manufactuers. He is engaged into the business of Sales of spares & Servicing of Vehicles in his service station. During the cource of Service of Vehicle/ Repairs of vehciles he also sales/uses spares parts purchased from manufactuer. Service Provider invocie for Spares and Service charges separately to his customer. Now I have following queries:
1. Since the spares purchased are used in Services/Repairs of the vehicle, whether he will be able to take credit of Excise Duty paid on spare parts purchased by him from manufactuers ?
2. Now, the Trading is forming part of negative list, whether in this condition he would be to take proportinate credit of Excise duty paid on sapres purchased?
Please advice on above issue.