SERVICE TAX REFUND

[SNEHAL SHAH]

sir ,

We are taxtile mfg co and our plant located at HARIDWAR & which is exempted excise duty , but Service tax GTA we are pay . So Input tax credit will be accumulated .

How we are utilise this accumulated cenvat credit .

Please give your expert advise on this .

SACHIN

 

 

AI Summary

Cenvat credit utilisation constrained where output is exempt; ISD or intra unit taxable nexus may enable lawful allocation.
A textile manufacturer at an excise exempt location pays service tax on GTA services but cannot generally utilise accumulated CENVAT credit where output is exempt. Credit utilisation may be feasible if another unit of the same manufacturer produces taxable output and conditions for Input Service Distributor distribution or inter unit credit allocation are satisfied; factual details and proper registrations are required.