Service Tax Credit on development of Logo on Stationery

[Ashok Chopra]

Respected Forum,

We are group of companies and develped common LOGO as design and artwork to be printed on Letter Heads, Envelops, Visiting Cards.  Bill has been received in EOU company.  Pls clarify

1.  Can we take credit of full amount of service tax in EOU Company and file refund under rule 5 of  CCR, 2004 or not ?

2  if the credit is permissible, whether proportionately?

pls advice

ashok chopra

AI Summary

Service tax credit eligibility may be challenged when a logo developed in an EOU is used across the group.
Eligibility for an EOU to claim CENVAT Credit on service tax paid for developing a logo is premised on EOUs being entitled to CENVAT credit, but where the logo is used group wide the department may object that it was not used exclusively for the EOU's export activity; the rules do not expressly allow proportionate allowance, so a cost-benefit assessment is advisable.