Cenvat credit availability on Currency exchanged

[kamal chordia]

Dear Sir

We are manufacturer exporter, as per notification no 26/2011 Service Tax dt 31.03.2011 our bank charged service tax on currency exchanged (export reliasation)

Please inform that service tax charged in the bank advice is cenvatable or not.

Thanks & regards

Kamal

AI Summary

Cenvat credit on bank currency-exchange charges may be available if treated as an input service related to manufacture and clearance.
Whether service tax on bank currency-exchange charges for export realisation is eligible for Cenvat credit hinges on characterisation: if treated as an input service in relation to manufacture and clearance of dutiable goods (with exported goods treated as duty-paid), credit is claimable, supported by tribunal decisions on bank commission and collection charges; conversely, if regarded as a post-export service not connected to manufacture/clearance, it is not eligible. Absence of a specific service-tax restriction like an excise notification is noted.