is service tax credit allowed for lease rent of capital goods i.e. machinery

[manish kumar]

An assessee has taken credit of Lease rent of Machinery.from A company. They also job work for A company & take input credit for all inputs. They sell all the goods by the payment of excise duty. Can we allow Cenvat Credit for Such case.

AI Summary

Company B Can Avail Cenvat Credit on Service Tax Paid for Machinery Lease in Job Work Scenario An individual inquired about the eligibility of service tax credit for lease rent of machinery used in job work. The discussion involved a scenario where Company B performs job work for Company A, which leases machinery to B and charges service tax. B procures inputs and pays excise duty, then clears goods as instructed by A. Respondents agreed that Company B can legally avail Cenvat Credit in this situation, with multiple experts supporting the view that input tax credit is eligible. The original inquirer expressed gratitude for the clarification.