CENVAT Credit on Legal services

[Binu Karuthedath]

Dear Experts

On of the Excisable manufacturer have paid legal service charges for Frame work of Brand Sale agreement and they have paid Service Tax under reverse charge system and allready taken CENVAT Credit for payment of Excise Duty.But Department has been objected to take CENVAT Credit on legal services. Their aragment is it is nor related to manufacturing and not eligible for CENVAT credit. Kindly clarify

AI Summary

Manufacturer Can Claim CENVAT Credit for Legal Services Under Cenvat Credit Rules, 2004; Ensure Invoice Address Matches Unit An excisable manufacturer paid service tax on legal services for a brand sale agreement under the reverse charge system and claimed CENVAT Credit. The tax department objected, arguing the legal services were unrelated to manufacturing and thus ineligible for credit. An expert clarified that under Cenvat Credit Rules, 2004, legal services are considered input services, making the service tax paid on them eligible for credit. Another contributor agreed, emphasizing the importance of ensuring the invoice address matches the manufacturing unit to avoid rejection. They advised checking the rejection reason and suggested the Head Office distribute the credit if necessary.