ISD to Jammu & Kashmir

[Ganeshan Kalyani]

Dear Sir,

I would like to discuss on a point where there is a Manufacturing unit in JandK where Excise duty is payable and refund is applied for the same as per Excise scheme. As per Finance Act Service tax is applicable to all the States in India except JandK. I would like to ask the cenvat credit rule is not restricting to avail credit of service tax against excise duty payable in the state of JandK. Whether service tax by way of Input service distribution can be distributed to JandK to avail cenvat credit against excise duty payable.

Kindly through some light in the query sited.

regards,

ganeshan

AI Summary

CENVAT credit distribution: service tax credit treatment in Jammu and Kashmir hinges on whether service tax law applies.
Whether CENVAT credit of service tax can be distributed to a manufacturing unit in Jammu & Kashmir hinges on territorial applicability: Jammu & Kashmir is a non taxable territory for service tax, and while one view permits distribution on the basis that CENVAT Credit Rules are framed under the Central Excise Act, a professional note states that provisions for availment and utilization of service tax credit do not apply to Jammu & Kashmir because service tax law is not applicable there.