cenvat credit taken for service tax payment

[Dnyaneshwar Sapkal]

hello sir,

we are small scale manufacturer of weighbridge our turnover is below 1.5 cr

we are not registered under excise registration but we are registered under service tax act.

for manufacturing process we purchased raw material of steel and paid excise (cenvat) at the time of purchase

when our final product is completed we installed that at the place of costomer

our bill is raised separately as a sales invoice for weighbridge and another invoice for installation service bill.

when we paid service tax we are taken excise input credit (cenvat credit) at the time of payment of service tax payment. is it correct..?

please advice us...

thanks..

d.a.sapkal

AI Summary

Manufacturer Can't Claim Cenvat Credit for Service Tax Due to Excise Duty Exemption on Turnover Below 1.5 Crore A small-scale manufacturer of weighbridges, with a turnover below 1.5 crore, inquired about the correctness of claiming Cenvat credit for service tax payment. They are registered under the Service Tax Act but not under excise, and they paid excise on steel used in manufacturing. Experts responded that since their turnover does not exceed the 1.5 crore limit, they cannot avail Cenvat credit for inputs, capital goods, and input services used in manufacturing. The consensus was that utilizing such credit for service tax payment is incorrect, as they benefit from an excise duty exemption.