Credit against service tax for excise paid.

[Milind Joshi]

We are electrical contractor Sales & Service providers. (We have VAT registration & Service tax registration) 

 

We have one issue as below.

 

We have service tax registration. We do not fall under excise as not manufacturer.We purchase many times excise-able goods. We sale it to our clients.And we provide services & claim service tax to our clients

 

Can we get this excise amount in credit against service tax.

 

Pls guide us in detail. 

AI Summary

Electrical Contractor Can't Claim Excise Credit for Trading Without Dealer Registration; CENVAT Credit Limited to Registered Dealers. An electrical contractor and service provider, with VAT and service tax registrations, inquired whether they could claim credit for excise paid on goods purchased and sold to clients against their service tax liabilities. Two responses clarified that while the contractor engages in trading activities by selling excisable goods, CENVAT credit is not permissible for trading activities. To pass on CENVAT credit benefits to clients, the contractor must register as a First Stage or Second Stage Dealer with the Excise Department. Thus, excise credit cannot be claimed against service tax without proper registration.