Availability of service tax input credit

[sunil mehta]

A service provider of Tangible Goods Supply services gives mining machinery on rental basis.He has claimed cenvat credit of capital goods on machine.Service provider has to bear thecost of diesel/petrol used as fuel in the machinery given on rent.He also uses oil/grease for that machine. Query:-1)Whether cenvat credit on inputs-diesel/petrol is available? 1b)whether cenvat credit on oil/grease is available as 'input' credit? 1c)Whether cenvat credit of excise duty paid on spares/machinery parts used in that machine is available as 'input' credit? 2)Will it make any difference if service provider instead of giving mining machinery on hire,he himself provides 'mining services'(i.e. excavating and cutting limestone in a Quary & unloading same in cement factory )?In other words whether above 'input credit ' will be available to him?

AI Summary

CENVAT Credit: Not Available for Diesel/Petrol, Available for Oil/Grease; Spare Parts Depend on Classification. A service provider renting mining machinery inquired about the availability of CENVAT credit on diesel, petrol, oil, grease, and spare parts used in the machinery. The query also questioned whether the credit conditions would change if the provider offered mining services instead of renting machinery. The response clarified that CENVAT credit is not available for diesel or petrol but is available for oil and grease. The eligibility for credit on spare parts depends on their classification as inputs. The conditions for availing CENVAT credit remain the same regardless of the service classification.