EXCISE DUTY CREDIT

[SHARMA NARAYAN]

Dear All,

we have given a turnkey Projects to supplier can we are taking the Cenvat credit because we are the Consingee

but some cases he raised service tax bill with material value and service value for the fabrication irrection of structural material for setup Plant and machinery

Pls suggest can we take the cenvat credit on that bill on which he is issing the Servic tax bill

AI Summary

Cenvat Credit Not Allowed for Turnkey Project Services Under Rule 2(l)(A) of Cenvat Credit Rules, 2004. A user inquired about the eligibility to claim Cenvat credit on a service tax bill for a turnkey project involving structural material fabrication and erection. The first response clarified that under Rule 2(l)(A) of the Cenvat Credit Rules, 2004, credit is not allowed for services related to works contracts or construction services, especially when charges for goods and services are separately invoiced. The second response confirmed that credit on materials is not permissible, as judicial decisions have established that credit is disallowed when the service provider claims abatement.