Service tax on supply of tangeble goods use

[srinivasan.K kuppuswamy]

Sir,

My query is we are importing the packing materials from Logistics concern, Sweden under customs notification 104/94 under exemption from payment of duties. (Customs duty or CVD) and using for packing of finished goods and export from export warehouse registered under Rule 20 of Central Excise Rules.

Exports takes place from Export warehouse which is separately registered under export warehousing procedure under Rule 20 of Central Excise Rules.  Finished goods are transferred from manufacturing premises to Export warehouse from there exports takes place.

We are paying the service tax under reverse charge mechanism on the transaction charges as well rental charges paid to the Logistics, Sweden ( packing material logistics)

My specific query is packing material BOE in the name of Factory. From there only we are transferring to Export warehouse. The service tax paid under reverse charge mechanism from Factory.

Can we avail service tax credit at factory for the service tax paid under reverse charge mechanism.

Rest of other export services such as Port services, Terminal handling, CHA etc can we claim service tax refund under Notification No. 41/2012-ST(For the exports takes place from export warehouse)

Request your reply and your immediate answer will be highly solicited.

Kind regards

K Srinivasan

[DR.MARIAPPAN GOVINDARAJAN]

In my opinion you can avail CENVAT credit on the service tax paid under reverse charge mechanism.

For the second query if the services received by you are coming under the specified services you can claim rebate.

AI Summary

CENVAT credit on service tax paid under reverse charge allowed; rebate possible for specified export-related services. CENVAT credit can be availed on service tax paid under the reverse charge mechanism for logistics/transaction charges on imported packing materials used for export, and if the services received are among the specified export-related services, a rebate under the export rebate framework may be claimed for services used in exports from an export warehouse.