Availment of cenvat credit of service tax paid on freight

[pardeep bisht]

We have received the purchase bill in which party add the freight and service tax on the added freight. so pls suggest can be avial the benefit of service tax and also provide the rule under which service tax levied by the party

AI Summary

Cenvat Credit on Service Tax for Freight Requires Original GAR-7 Challan, Not Just Purchase Bill Under Rule 9. A query was raised regarding the availment of Cenvat credit on service tax paid for freight included in a purchase bill. The response clarified that Cenvat credit cannot be claimed based solely on the purchase bill. Instead, the buyer should request the original GAR-7 challan from the seller, which evidences the payment of service tax. According to Rule 9 of the Cenvat Credit Rules, credit can only be availed if the service is an eligible input service and all conditions are met, with the GAR-7 challan as the basis for claiming the credit.