Dutydraw back and service tax input claiming

[chikkaiah madhappa]

Whether service tax input credit can be claimed in the following case. 

A textile company its 70% revenue is from export  and 30% revenue is charging service tax on agency commission. The co is taking ST input on all the service bills & also taking duty drawback credit. Is it right??

[YAGAY andSUN]

I presume that when you are talking about Duty Drawback then it means that you are availing All Industry Duty Drawback on the exports made by you.  In the All Industry Duty Drawback it is assumed that inputs used in the manufacturing of finished goods for export purpose must have incurred the customs duty at any stage of manufacturing, therefore, it is given back to the exporter on wheigted average method and standards have been fixed accordingly.

Duty Drawback and availing the CENVAT credit of Input Services are two different things.  You may avail the both benefits simultenously.

Please also check it with your counsel or with your Range Superintendent.

AI Summary

Duty drawback and input credit can be claimed concurrently under distinct fiscal mechanisms, subject to applicable standards and professional advice. Whether service tax input credit can be claimed alongside All Industry Duty Drawback is considered. All Industry Duty Drawback refunds assumed customs duty on inputs for exports on a weighted average basis under prescribed standards. CENVAT credit of input services and duty drawback are distinct mechanisms and may be availed simultaneously, but the adviser recommends verifying with counsel or the Range Superintendent to ensure compliance with applicable standards.