Availment of cenvat credit on transportation and taxable services

[Guest]

A certain unit which is engaged in the business of export of iron ore is neither a manufacture under Central Excise law nor any output service provider under Service Tax law. The unit is registered with the service tax Department under Goods Transport Agency service as per Notification No.35/2004 dt 03.12.2004 and discharging their service tax liability on both Inward and outward Transportation. The Unit also incurs expenditure towards certain taxable services for exporting the ore and paying service tax to their service providers. It is requested to enlighten whether the unit is eligible for availing the credit of service tax paid on transportation and other taxable services being received by them and claim refund/rebate of the accumulated credit.

[Surender Gupta]

For getting refund of service tax paid on certain services, which is otherwise not eligible for cenvat credit, please see notification no. 41/2007 ST dated 6-1-2007

AI Summary

Cenvat credit eligibility questioned for exporter paying service tax on transport and other services; refund guidance referenced. An exporter of iron ore, not a manufacturer or output service provider, registered under GTA service and paying service tax on inward and outward transportation and other taxable services, seeks to know if it can avail cenvat credit on those services and claim refund of accumulated credit. The reply points to Notification No. 41/2007 ST dated 6-1-2007 for refund of service tax paid on services not eligible for cenvat credit.