Cenvat credit on detention charges

[Tejas Gandhi]

Dear Sir,

Please let me know , Can we avail cenvat credit on container detention charges ?

Thanks,

Tejas gandhi

[Rajagopalan Ranganathan]

Sir,

If the warehouse keeper charges any service tax on 'container detention charges' then you are eligible provided you prove with evidence that it is an input service for you.

[MUKUND THAKKAR]

please refer following. service tax is not applicable on detention charges..so no question for avialment of cenvat credit..

F.No.332/29/2009-TRU

[GURURAJA VENKATESH]

This circular has been issued prior to negative list regime. whether the same will hold good for post negative list regime?

Regards,

K.G Subramanian

[Rajagopalan Ranganathan]

Dear Sri. Mukund,

Thank you for the information. This circular is dated 2010. Then why this question arise now? I think the Department officers are aware of this circular and continue to raise the demand.

[YAGAY andSUN]

This Circular Still hold its legal sanctity as nothing has been issued by the CBEC as yet against this Circular.

[KASTURI SETHI]

Dear Sirs,

There are so many Board's circulars pertaining to the period prior to 1.7.12 but the same have neither been rescinded nor amended. Situation is to be examined in view of post period w.e.f. 1.7.12. The department does not consider it necessary to touch these circulars pertaining to the period prior to 1.7.12, especially, in view of introduction of Negative List under Section 66 D and Mega Exemption Notification. There is a question mark on the validity of this circular, it being related to period prior to 1.7.12.

The whole scenario is changed after 1.7.12 so we are to resort to the amended Act (effective from 1.7.12) rin conjunction with notifications/circulars introduced after 1.7.12.

[YAGAY andSUN]

F.No.96/90/2015-CX.1

AI Summary

Cenvat credit availability on container detention charges depends on service tax being charged and proof of input service. Whether Cenvat credit is admissible on container detention charges depends on whether service tax was charged on those charges and whether the recipient can prove they constitute an input service; a contrary administrative view holds that service tax is not leviable on detention charges and hence no credit, with further uncertainty as to the continuing applicability of pre-negative-list circulars following the post-1.7.12 regime change.