Services provided against Focus Product Duty Scrip

[Parashiva Murthy]

If Services are provided to client using Focus Product Duty Scrip without charging Service tax vide Notification No.07/2013-ST. Will the same qualify as Exempted Services under Cenvat Credit Rules and If yes, whether Rule 6 be applicable for reversal of credits.

[PAWAN KUMAR]

Dear Sir,

No. The service tax debited in the scrip is available as cenvat credit or drawback. These services are not exempted services.

AI Summary

Exemption status of services using Focus Product Duty Scrip clarified: not exempt, service tax treated as cenvat credit or drawback. Services provided against a Focus Product Duty Scrip without charging service tax under Notification No.07/2013-ST are not treated as exempted services; the service tax debited in the scrip is available as cenvat credit or as drawback, so credit treatment follows normal input credit or drawback rules rather than exemption-driven reversal.