Utilisation of excise duty for the payment of service tax., Service Tax

[S.SRIVIDYA]

An authorised service station which purchases spares from manufacturer vide excise invoice. Can the credit of excise duty paid be used in paying service tax on bills raised for repair of vehicles if the cost of spares is not included in calculating taxable services.

Posts / Replies

[Surender Gupta]

Obviously not, if the value of spares are not included in the value of taxable services, you are not entitled to avail Cenvat Credit of Excise Duty paid on such spares.