Eligibility of CENVAT credit

[VAMSI KRISHNA]

Sir,

if service provider opt for composition scheme avaliable under rule 7 of service tax rules 1994....... (air travel)....

my doubt is whether same is eligible for CENVAT credit to receiver or not????????

Thanks

AI Summary

CENVAT credit: receivers may claim input credit for services paid under a provider's composition scheme when nexus and business use exist.
Payment of service tax under the composition option by an air travel agent does not, by itself, bar the service receiver from claiming CENVAT credit; the receiver may avail credit where the requisite nexus between the input service and the output taxable service is established, subject to existing CENVAT Credit Rules limitations such as exclusion for personal or non business use.