we are manufacturer of automobile parts and during process some hazardous waste arise like ETP/STP sludge , paint sludge etc which is disposed off thru authorized vendor , which thery are charging amount with service tax.
Is this ST amount is eligible as input service credit or not as per definition of input services.
Please advise with some reference cases.
Thanks and Regards,
S.Ramakrishnan.
Debate on Service Tax Credit Eligibility for Hazardous Waste Removal in Auto Parts Manufacturing Raises Legal Interpretation Issues An individual inquired about the eligibility of service tax credit for expenses incurred in the removal of hazardous waste, such as sludge, during the manufacturing of automobile parts. Various participants offered differing opinions. Some argued that the sludge removal is part of the manufacturing process and thus eligible for input service credit. Others contended that since sludge is a by-product post-manufacturing, the service tax paid for its disposal is not creditable. The discussion referenced several case laws, highlighting differing judicial interpretations and the potential for litigation if credit is claimed. (AI Summary)
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