Excise - cenvat credit rules 2004

Nimish Karwa (Querist) 22 September 2014 This query is : Resolved
If exporter get payment in foreign currency then bank charges some service tax as per Rule 6(7B) of Service tax Rules 1994 which is as follows
Upto 100000 - 0.12% of the gross amount of currency exchange
Or RS. 30 which ever is higher

Exceeding 100000 – upto 1000000 120+0.06% of the (Gross amount of currency exchange
-100000)

Exceeding 1000000 660+ 0.012% of the (Gross amount of currency exchange
-1000000
or
6000
Whichever is higher

My question is whether exporter can take the cenvat credit of this.

Argument 1. As per Cenvat credit rules 2004 Input service includes financing , auditing . accounting etc
(In inclusive part of Definition)

Argument 2 N.N. 52/2011 of Service tax For refund of service tax on specified services in point 12 this service is mentioned for refund (This notification is applicable before negative list came . After this it has been with drawn

After negative list regime came this (N.N. 52/2011) is withdrawn , then N.N. 41/2012 has been been placed it also support for refund of service tax .

This means if refund is possible we can take cenvat credit .

Please confirm wheather we can take cenvat credit of this service of bank

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Surrender K Singal (Expert) 25 September 2014
For taking credit of Service tax, it has to be checked if the said foreign exchange receipt relates to any input of the goods / services of the assessee on which he is liable to pay CENVAT / Service tax

Nimish Karwa (Querist) 26 September 2014
Sir it is the payment received for export and bank issue remittance receive certificate in which service tax is mention.
it is the amount received for sale foriegn currency. For converting into rupee bank charges some service tax .
So wheather cenvat credit of service tax charge by bank is allowed or not

Surrender K Singal (Expert) 29 September 2014
How is such ST relatable to qany input of your excisable goods against which you intend to take credit if ST ? Apparently, it is post manufacturing !

Nimish Karwa (Querist) 30 September 2014
Banking service is ‘input service’ –
CCE v. Hindustan Coca Cola (2010) 29 STT506 (CESTAT SMB) – same prima facie view in Rohit Surfactants v. CCE (2009) 240 ELT 472 (CESTAT SMB) * Jeans Knit v. CC (2011) 30 STT 434 = 9 taxmann.com 116 (CESTAT).

In the definition of input service as per rule 2 of Cenvat credit rules 2004 it is specifically included financing.

Definition of financial service is given in Sec 65(12) Finance act 1994 which also include foriegn exchange broking service

Surrender K Singal (Expert) 30 September 2014
That apart, availing of credit is relatable to input of excisable goods and not as PME

Nimish Karwa (Querist) 01 October 2014
If as per your opinion this is not available as cenvat credit.
Then why this service tax is refunded by government as per N.N.52/2011 and 41/2012
Then it will not be justice