Service Tax cenvat avail on A/c installation in shop floor

[Asked by Guest]

Dear Sir,

We are a automobile manufacturing company & in this year we have installed new air conditioner in our shop floor for workers & also work related to sealing and partation in shop floor.

Now our supplier raised invoice & charges service tax on 50% of invoice value.

Sir, can we avail service tax cenvat on this service.

AI Summary

Cenvat credit availability for installation services used in manufacturing, subject to manufacturer status and exclusion rules.
Cenvat credit is available to a manufacturer for service tax paid on installation services used in or in relation to manufacture, provided the company qualifies as a manufacturer and the services do not fall within the exclusion for the service portion in execution of works contracts related to buildings, civil structures or foundations. Whether service tax is charged on a portion of the invoice depends on invoice separation versus combined works contract billing; where supply and installation are distinct, installation is a taxable service eligible for credit.