Utilisation of excise duty for the payment of service tax.

[Guest]

An authorised service station which purchases spares from manufacturer vide excise invoice. Can the credit of excise duty paid be used in paying service tax on bills raised for repair of vehicles if the cost of spares is not included in calculating taxable services.

AI Summary

Cenvat Credit on Excise Duty for Spare Parts Not Allowed if Excluded from Taxable Services in Repair Bills. An individual inquired whether an authorized service station could use the credit of excise duty paid on spare parts to pay service tax on repair bills when the cost of spares is excluded from taxable services. The response clarified that it is not permissible to avail Cenvat Credit of Excise Duty on spares if their value is not included in the taxable services.