Can we issue Excise invoice against Service Tax Registration

[nihal maner]

Dear Sir,

Please Advise Us Below..

We are a Excise register Dealer & Selling material through excise invoice. Can we Raise Excise invoice to someone who not registered in Excise but have a registration of Service Tax Only..?

[KASTURI SETHI]

In such a situation your buyer would not be able to pass on cenvat credit. Since Cenvat Credit is across the board, your buyer can utilise credit himself as Service Tax assessee for providing taxable output service, if otherwise eligible.

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of Shri Sethi.

[nihal maner]

But it is allowed us to raise excise invoice on him (Because he is not registered in excise & no ECC no.).. please suggest a related excise notification..

[MADAN RAHEJA]

Reply given above by Sh. Sethi is to the point. Please see Rule 3 of Cenvat Credit Rules whereunder a service provider, if otherwise eligible, is entitled to avail credit not only on input service but also on inputs/capital goods used in providing output service. Since your buyer is a service tax registrant he is eligible to take credit on basis of invoice issued by you as registered dealer.

[KASTURI SETHI]

I am thankful to Sh.Madan Raheja, an expert for completion of my reply as well as endorsement.

[KASTURI SETHI]

SH.MARIAPPAN GOVINDARAJAN Ji,

I am really thankful to you for devoting your precious time for perusing my so many replies in a single day and supporting the same on merits. Such endorsements boost my moral.

[nihal maner]

Thanks to all of You Sir..

AI Summary

Cenvat credit entitlement: excise invoices to service-tax registrants enable credit utilization for taxable services, subject to eligibility. An excise invoice may be issued to a purchaser registered only under service tax; the purchaser cannot pass on Cenvat credit as an excise registrant but may avail Cenvat credit for taxable output services if otherwise eligible. The Cenvat Credit framework permits service providers to claim credit on input services and on inputs and capital goods used in providing output services, so the excise invoice provides the documentary basis for such credit subject to eligibility under the Cenvat Credit Rules.