Supply or service

[srinivasan.K kuppuswamy]

Importing of pallets under Customs Notification 104/94 and after packing exports takes place.

Will it be supply of goods or we need to pay service tax under reverse charge mechanism.

If ST paid whether it is eligible for cenvat credit.

Regards

 

K Srinivasan

 

[Brijesh Verma]

Here, the activity that is being done in India is important. The activity is "Packing". So please first judge the excise applicability. 

Further, the query seems to be incomplete insofar as you have not provided any details as to on whose behalf this work is being carried out. If this work is on a principal basis i.e. direct import and export on own behalf then in our view service tax is not applicable.

[srinivasan.K kuppuswamy]

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

AI Summary

Debate on service tax for imported packing materials from Sweden under Notification 104/94 and CENVAT credit eligibility. A discussion on the applicability of service tax and eligibility for CENVAT credit regarding the import and use of packing materials from Sweden under customs notification 104/94. The main issue is whether the activity qualifies as a supply of goods or if service tax should be paid under the reverse charge mechanism. One participant suggests that if the activity is conducted on a principal basis, service tax may not apply. The inquirer seeks clarification on whether they can claim service tax credit at the factory and request guidance on claiming refunds for other export services under Notification No. 41/2012-ST.