Correlation of input tax crdit with output

[chaganti srinivas]

We are basically mafr's of Pre fab Building and taking Service tax credit of Sercurity services, Man power, Banking charges, telephone charges etc and paying some times against Erection & Commission of our material and some times tranfering to Excise credit. Is is necessary to Co-relate the input service tax credit with output services and Can't we avail the said service tax credits?. Pleaes clarify.

AI Summary

Cenvat Credit Rules 2004: No Need to Correlate Input Service Tax Credit with Output Services for Manufacturers. A query was raised about whether it is necessary to correlate input service tax credit with output services for a manufacturer of pre-fabricated buildings. The response clarified that according to the Cenvat Credit Rules, 2004, it is not necessary to correlate them. There is no restriction on availing service tax credits if all documentation and requirements are met. However, a recent amendment (notification no. 16/2009 CE (NT) dated 07.07.2009) restricts taking Cenvat Credit on materials like cement and TMT bars used for building construction.