Levy of service tax - Job work

[Guest]

We are the manufacturer of automotible parts. We were getting job work onsome of our parts from outside party. Party was not charging the service tax since last two years on the job work. Now the job worker has received a noticc from excise department for levy of service tax on the total billing of last two years. Now job worker wanted to raise a bill on us for service tax amount. My question is whether we being manufacturer can take the Cenvet on service tax related to previous period(s)

[Surender Gupta]

I afraid, you may not be allowed to avail the cenvat credit of the service tax paid by the service provider on the basis of SCN

AI Summary

Cenvat credit denied: manufacturer cannot avail credit based on service provider's SCN for past job-work services. Manufacturer received job-work services where the job worker did not charge service tax for two years and later received a show-cause notice; the manufacturer asked whether it could avail Cenvat credit for that service tax. The reply advised that the manufacturer may not be allowed to avail Cenvat credit of the service tax on the basis of the show-cause notice issued to the service provider.