LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

M.R.K.PRASAD-Advocate (SELF)     18 December 2012

Central excise duty can be adjusted to service tax...

whether the cental excise duty paid against the  purchase of machinery can be adjusted for service tax of installation and maintenance of same macinery or annual maitenance of other machinry even though having not registered in centrlal excise..


 3 Replies

Ramesh Chandra Verma (advocate)     19 December 2012

Credit is allowed only when the capital goods procured by you is used in providing output service, and can be utilised for payment of service tax on output service.


R C Verma

1 Like

Rajeev Kumar Garg ( Self Consultancy of Excise Customs and Service Tax)     31 December 2012

Dear Mr. Prasad,

I am agree with reply of Mr. R.C. Verma.

Your query does not clear to me whether your purchased machinery is used in providing your output service or not.  If yes, cenvat of central excise duty paid on machinery can be taken and may be used for payment of service tax on your output service.  

Further, it is not necessary to get excise registration for taking cenvat credit of excise duty paid on inputs or capital goods.  If you are registered in service tax for providing taxable service and pay service tax on output service, you may take cenvat credit of excise duty paid on machinery.  But you have to ensure that the perticular machinery or input is usable for providing output service.  For it, you should also check "CAPITAL GOODS MEANS" given in Cenvat Credit Rules, 2004.  

I think above will clear your doubt, still you may call me over phone, if you have further query or doubt in this regard.



Rajeev Kumar Garg

(M.Com, L.L.B.)

Consultant (Excise, Customs & Service Tax)

Ph. No. 7500802402.

madhuk.1983 (Sr.Accoutant)     31 October 2014

Dear Sir

Can the Service Tax Paid on Input Services used for after sale (like supervision expense for installation of machinery after sale but we sold only product and no separate amount charged) can be used for payment of Service Tax on Output services which are not related to manufacturing,like consulting engineer for designs,etc

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register