Service Tax credit

[Yatin Vora]

We are setting up new factory. I would like to know that can we take the service tax credit available during setting up of the factory,when we start the production for removal of taxable goods,from our factory? In other word, can we use for payment of CEVAT ? 

AI Summary

CENVAT Credit Eligibility Clarified: Restrictions on Service Tax Credit for New Factory Setup under CCR 2012. A company setting up a new factory inquired about the eligibility to claim service tax credit during the setup phase for future use in paying CENVAT. Responses clarified that CENVAT credit is generally allowed for input services used in manufacturing, but there are restrictions, particularly for services related to construction of new factories or offices. Registration is necessary before availing CENVAT credit for capital goods. It was advised to refer to specific exclusions in the CENVAT Credit Rules (CCR) as amended in 2012 for detailed guidance on eligible services.