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 eligibility denied when works contract invoices separate goods and service charges, and abatement is claimed.
Rule 2(l)(A) excludes the service portion of works contracts and construction services from 'input services' when used for construction, execution of a building or civil structure, or for laying foundations or support structures for capital goods; consequently, if a contractor's invoice separately states goods and service charges for such works, the recipient is not eligible to claim Cenvat credit on the service portion. Additionally, where the service provider has claimed an abatement, credit on the materials supplied in that transaction is not allowed.