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.
Assessee Cannot Use Manufacturing Unit's Cenvat Credit for Service Tax on Output Services Under Cenvat Credit Rule, 2004. An assessee, registered for both service tax and central excise, inquired whether they could use input credit from their manufacturing unit to pay service tax on output services, given the lack of specific correlation in the Cenvat Credit Rule, 2004. The response clarified that it is not permissible to use Cenvat Credit from the manufacturing unit for service tax payments, as the input credit in the manufacturing unit is intended solely for duty payable on the sale of manufactured goods. (AI Summary)
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