cenvat credit

[sv bhasker]

Dear experts, 

An assessee holds a PAN number based on which he obtained Service Tax Registration for rendering services. Similarly took Central Excise Registration for manufacturing goods. In the circumstances of the assesssee being both service provider and manufcaturer, can he  utilize input credit lying in manufacturing unit for the payment of service tax on output services, in absence of any one to one correlation  Cenvat Credit Rule, 2004

Regards.

[GANTI SARMA]

No, you are not supposed to use Cenvat Credit lying in manufacturing unit for payment of srevice tax on output services, Input credit in manufacturing unit meant for duty payble on sale of manufacturing goods.

AI Summary

Cenvat credit restrictions: manufacturing unit input credit cannot be applied to discharge service tax liability on services. Input/cenvat credit attributable to manufacturing activity is intended to meet excise duty on sale of manufactured goods and is not available for payment of service tax on output services; absence of one-to-one correlation does not permit cross-utilisation from the manufacturing register to discharge service tax liability.