ITC on inward transportation

[jagadesh kumar bhojanapalli Kumar]

Dear Sir,

We are having 100 percent EOU unit and we are paying service tax on inward transportation 12.36 percent on 25 percent of transportation charges in connection with  imported & indigenous goods  with availing abatement (75 percent ) .  We are paying through Bank challan and taking credit in subsequent months. whether we can avail or not please clarify the same.  Range superintendent is issuing a letter to reverse the same with interest.  (We have not utilized the availed credit)

Pl clarify the same

AI Summary

Input service credit on inward transportation may be available despite reverse charge; challenge departmental reversal in writing.
Dispute whether an EOU can claim input service credit for inward transportation treated under the reverse charge mechanism; the department ordered reversal, but commentators cite the Cenvat Credit Rules' definition of input service as covering services for receiving material, permitting credit use to discharge duty-equivalents or to seek refund, and advise a formal written challenge to the departmental letter with escalation to higher authorities.