List of services Eligible for CENVAT Credit

[Rudrayani Shedjale]

Hi

We are the manufacturer of API(Active Pharma Ingredient). we file the ER1 returns.

previously we have taken credit of entire service tax borne by us.

Services includes as :-

• Security(at factory premises),
• [Custom Clearance ,Transport,Terminal Handling Charges,ADC charges- these are provided by our CHA]
• Material Testing
• Pest Control(at factory premises)
• Commission(for assisting into sales)
• Courier (for sending samples/documents abroad)
• Labour Charges
• Validation & Calibration.

Can the expert advise whether all the above mentioned services are eligible for taking CENVAT credit??

AI Summary

CENVAT Credit Eligibility: Security, Transport, Pest Control Valid; Sales Commission Disputed; Courier Depends on Removal Timing A manufacturer of Active Pharma Ingredients inquired about the eligibility of various services for CENVAT credit. The services include security, custom clearance, transport, pest control, sales commission, courier, labor charges, and validation. An expert clarified that all services except sales commission are eligible for CENVAT credit. However, there are conflicting court decisions regarding sales commission, with Gujarat High Court ruling against it and Punjab and Haryana High Court in favor. For services like courier and CHA, the eligibility depends on whether they occur before or after the place of removal, as defined by relevant notifications and rules.