TaxTMI 
TaxTMI 
Reversal of Input service credit on Supply of Tangible goods service when the Input/Capital Goods removed as such
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....eversal of Input service credit on Supply of Tangible goods service when the Input/Capital Goods removed as such<br> Query (Issue) Started By: - vinay wakde Dated:- 3-2-2012 Last Reply Date:- 14-2-2012 Service Tax<br>Got 3 Replies<br>Service Tax<br>We are receiving Input through Barges and are availing CENVAT credit as per the duty paying document. Some times, we are clearing Input as such for whi....
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....ch we are proportionately reversed the CENVAT involved therein. During the Audit, we have been also asked to reverse the Input service credit proportionately involved for transporation of said Input through the Barges under service catagory "Supply of Tangible Goods". Kindly clarify whether we also have to reverse the credit on Input service referred above. With Regards, VINAY WAKDE Reply By ra....
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....j kumar shukla: The Reply: KINDLY CLARIFY THE ISSUE. HOW THE CLEARANCE OF INPUTS AS SUCH IS CLASSIFIABLE UNDER SUPPLY OF TANGIBLE GOODS? Reply By vinay wakde: The Reply: We are importing Input Iron Ore Pellets. The Mother Vessel anchorage at High Sea. We are hiring the Barges for transporatation of said imported goods from Mother Vessel to Jetty. The Barge Hire charges are covered under service....
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.... Tax catagory "Supply of Tangible Goods" since 16.05.2008. Some times we clear some Input as such 7 reversing proportionate CENVAT involved in the respective duty paying document. However, we are not reversing proportionate Input credit taken by us under catagory "Supply of Tangible Goods". During the Excise Audit, we have been asked to reverse proportionate credit of Input Service taken by us. Ki....
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....ndly clarify. With Regards, VINAY WAKDE Reply By raj kumar shukla: The Reply: CESTAT in case of A.R.Casting VS CCE (2010) 25 STT 244 (CESTAT SMB) HAS HELD THAT THE RULE USES THE WORDS INPUTS WHICH APLIES TO INPUT GOODS AND NOT INPUT SERVICES. HENCE CENVAT CREDIT OF INPUT SERVICES USED IN BRINGING THE INPUTS IN THE FACTORY IS NOT REQUIRED TO BE REVERSED..FURTHER CESTAT HAS ALSO HELD THAT CENVAT....
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.... ON GTA SERVICE IS ALLOWABLE EVEN IF INPUTS/CAPITAL GOODS REMOVED AS SUCH.I GT RATIO OF THESE CASES ALSO APPLY IN PRINCIPLE.TO YOU. AS GTA CAN BE TREATED AT PAR WITH SERVICES OF BARGE. CCE VS Simplex Castings 2010(25) STT 106, Chtrakoot Steel Vs. CCE<br> Discussion Forum - Knowledge Sharing ....