Sir,
We have excise registration and Service tax registration & our product is enginering related product . So we are Manufacturing product and errected at Customer site through contract services .
Now problem is that contractor raised bill with service tax & we have awailed cenvat credit on this but in audit objection is that this errection activity is not your inside production premises so all service tax disallow and raised point & revesed with interest .
We had already pay service tax on errection servie provide to customer on Amount received from custiomer as a errection and commissioning charges , so please gude on which poing auditoer dissallow this .
Advance thanks .
Regards,
SNEHAL SHAH
Company's Cenvat Credit on Service Tax for Off-Premises Erection Disallowed; Differing Opinions on Eligibility and Refund A company involved in manufacturing engineering products faced an audit objection regarding Cenvat credit claimed on service tax for erection activities conducted outside its premises. The audit argued that since the erection was not part of the manufacturing process, the service tax credit was disallowed. Respondents in the forum provided differing views: one suggested that if input services are used for output services, credit should not be denied unless abatement is claimed. Another agreed with the audit, stating that the service was unrelated to manufacturing. The final response clarified that the contractor should pay the service tax, and the company should reverse the credit and seek a refund. (AI Summary)
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