Service Tax avail on manufacturer depot services

[Asked by Guest]

Dear Sir,

We have one manufacturing unit and due to shortage of space start a new manufacturer depot near by customer. our manufacturer depot register under central excise. We have transfer our FG after paying of duty under rule 7 from our factory to depot. In Manufacturer depot we have maintain RG23D register & duty pass on to customer on time of sale.

We have paid service tax on some services from our manufacturer depot like rent of depot, freight outward etc. Now my query is can we avail service tax in our manufacturing unit and adjusted with our duty? All invoices received on our manufacturing unit address.

AI Summary

Input service credit eligibility depends on centralized registration and whether depot activity constitutes trading, affecting availment.
Credit for service tax paid at a depot can be availed at the manufacturing unit if there is no centralized registration with an Input Service Distributor and the depot's activity does not constitute trading; services attributable to trading are exempt and ineligible for credit, and maintenance of RG23D indicates dealer/trading activity while transfers to depots are treated as stock transfers under VAT with Form F for inter state transfers.