Service Tax & cenvat credit

[Asked by Guest]

 Is Service tax paid  allowable as credit for payment of Excise Duty & Vice-versa ?

[PANKAJ GROVER]

YES

Service Tax and Excise Duty are allowable against each other as the Definition of CENVAT Credit includes both the Service Tax and Excise Duty..

[NEERAJ KUMAR, RANCHI]

In certain cases it is not allowable, like in case where te recipients is required to pay tax, it is not allowed.

AI Summary

CENVAT Credit reciprocity: Service tax and excise duty credits are generally cross-allowable, but exceptions apply.
CENVAT credit rules permit set-off between service tax and excise duty, allowing credits of one head to be used against liabilities of the other, but exclusions apply where the recipient is required to pay the tax, preventing inter-head crediting in those cases.