service tax on supply of tangeble goods service

[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

[PAWAN KUMAR]

As per my view, cenvat credit can be taken. Further for other services for which you are intending to apply for refund, cenvat credit of the same can also be claimed (refer Notification No. 41/2012 dated 29.06.2012).

AI Summary

Cenvat credit on reverse charge for packing logistics can be claimed; export service refunds may also be available. Whether Cenvat credit is available where packing materials are imported under customs exemption and logistics services from a foreign supplier are charged to the factory under the reverse charge mechanism for packing of finished goods exported from an export warehouse; the respondent advised that Cenvat credit can be taken for the service tax paid under reverse charge and that cenvat credit or refund may also be claimed for other export-related services under the applicable export refund framework.