Benefit of GTA - being a manufacturer, Service Tax

[Vijay Chitte]

A manufacturer does not providing any taxable services, but fall under GTA service and pay the tax on 25% on gross amount. Query 1: Manufacturer pay the service tax on GTA is also treated as a service provider? Query 2: whether the Manufacturer is also entitled to take all benefit [Cenvat Credit Rule, 2004,  Rule 6(3) and 6(5)]. which a service provider is entitled to?

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[Surender]

A manufacturer who is paying service tax on GTA in the capacity of receiver of services is treated as a service provider for the limited purpose of payment of service tax. However, he can claim the service tax paid on GTA as Cenvat Credit to be set off against Excise Duty. However, provisions of rule 6(3) and 6(5) shall be applicable on him.