Input service Tax credit u/r CCR,2004, Service Tax

[ramniranjan kandoi]

There is a CETP , each factory in Industrial Area has to be a member of CETP plant for secondary Treatment of effluent generated during manufacturing process.CETP recovers charges for treatment of effluent and also service tax. Unit takes credit of Service tax .Dept. is issuing SCN for 2 reasons.

a. Services by CETP is given outside factory premises.

b.There is no relation of treatment by CETP and manufacturing.

Explained everything in detail to dept, but not trying to understand and issue SCN.

Kindly throw light on this issue in detail with suitable case law.

Posts / Replies

[PAWAN KUMAR]

Dear Sir,

Service provided outside the factory premises is eleigible for cenvat credit availment and direct nexus with the manufacturing. Kindly read the case of Maharashtra Seamless Ltd. for similar facts and circumstances. Another case is of Vikram Cement (2009), GHCL Limited etc.