https://www.taxtmi.com/forum/issue?id=4093 Manufacturer availed Cenvat credit on contractor's service tax for erection at customer sites; auditor disallowed credit because the work occurred outside production premises and the manufacturer did not render the output service. Credit is allowable only where the service is used in manufacture or in relation to an output service rendered by the assessee; full subcontracting places tax liability on the contractor, while partial subcontracting may permit input credit where the assessee provides the output service. The recommended compliance step is reversal of credit with interest and pursuing refund under applicable procedures. en-us Fri, 27 Apr 2012 10:35:20 +0530 Thu, 23 Jan 2025 15:58:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=4093 Manufacturer availed Cenvat credit on contractor's service tax for erection at customer sites; auditor disallowed credit because the work occurred outside production premises and the manufacturer did not render the output service. Credit is allowable only where the service is used in manufacture or in relation to an output service rendered by the assessee; full subcontracting places tax liability on the contractor, while partial subcontracting may permit input credit where the assessee provides the output service. The recommended compliance step is reversal of credit with interest and pursuing refund under applicable procedures. Discussion-Forum Service Tax Fri, 27 Apr 2012 10:35:20 +0530 https://www.taxtmi.com/forum/issue?id=4093