credit of service tax

[rutvij vyas]

my client is purchasing coal from coal company then after to wash coal it has been sent to washery. now washery will wash the coal which is perfact and will not wash rejected coal. now my question is whether my client will get credit of service tax on rejected coal ? let me clarify this by example that if coal company provides 100 ton coal to washery then washery will first wash 100 ton then after finding out 20 ton is rejected coal so whether it has to issue bill of 80 ton and charged service tax accordingly or should raise invoice stating 100 ton wash coal less 20 ton rejected and thenafter bill of 80 ton ? please guide me on urgent basis

AI Summary

Cenvat credit entitlement for washery services extends to full quantity billed when washing covers rejected coal as well.
The legal issue is whether cenvat credit on service tax applies when a washery washes an entire supplied consignment but a portion is later rejected. If the washery performs and charges for the washing on the full quantity, it may invoice and claim cenvat credit for the entire quantity; invoicing may separately record clean and rejected quantities for clarity, but credit follows the quantity on which the service was performed and charged under the cenvat rules.