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

Cenvat credit entitlement excluded where small scale excise exemption applies, preventing use of input duty credit against service tax liability.
A manufacturer claiming small scale excise exemption cannot claim or utilize cenvat credit of duties paid on inputs, input services, or capital goods used in manufacture to discharge a separate service tax liability; cross utilisation required contemporaneous registration in both excise and service tax and depends on period specific rules.