Cst n service tax

[THYAGARAJAN KALYANASUNDARAM]

Dear expert,

As per the c form is concern, if the vehicle is purchased for the purpose of mining is allowed. My question is that, one of my client is providing services as , digging work and transportation to mining owners. And they are purchasing tipper vehicle against form c from outside tamilnadu. whether as per the cst act is correct or they have to pay full tax and purchase the vehicle.

Whereas they have registered under tnvat and cst act and they sells some of the machinery parts to the mining owners whose engaging their own machines in the mining activities.

Further, they have registered under service tax and paying the service tax promptly. And availing the cenvat credit on the capital goods as tipper vehicles.

If anything wrong kindly clarify.

[DR.MARIAPPAN GOVINDARAJAN]

In respect of service tax, if the capital goods is utilized for the provision of service, then the CENVAT credit on capital goods may be utilized.

[THYAGARAJAN KALYANASUNDARAM]

Dear sir,

Thanks for your valuable reply and can you explain about the cst purchases in my query. It's very urgently bring it to my client knowledge. Since, inception of their business they are use to procure the vehicles against form c against u/s 8(1) of the cst act. Kindly elaborate me sir.

AI Summary

CENVAT credit on capital goods may be utilized when the capital goods are used in providing taxable services. Query whether tipper vehicles purchased against Form C under the CST framework are permissible for a service provider performing excavation and transport for mining owners; taxpayer is registered under VAT/CST and service tax and claims CENVAT credit on tipper vehicles. Advisory reply confirms that CENVAT credit on capital goods may be utilized where the capital goods are used in providing services, without resolving the Form C permissibility issue.