Cenvat credit of Service tax paid under Section 68(2) of Finance Act, 1994 — Clarifications

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..... rovider/ manufacturer. Please refer letter F.No. V/30-58/CCO/S.Tax/2005/3934, dated 8-9-2005 regarding availment of CENVAT credit by the recipients of the taxable service namely goods transport agency service who discharge service tax liability as per Rule 2(v) of Service Tax Rules, 1994 read with Section 68(2) of the Finance Act, 1994. The issue raised is whether a person who is not a servic .....

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..... ories of persons, other than the service provider, to discharge the service tax liability in relation to taxable services provided by a goods transport agency. Under Section 68(2) a person required to pay the service tax, though not the actual provider of the service, is treated as the service provider for the limited purpose of discharging the service tax liability. Rule 2(L) of CENVAT Credit R .....

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..... Credit Rules are applicable only to the manufacturer of excisable goods or the provider of taxable services. It is evidently clear from the provisions of Section 68(2) that the person discharging the service tax liability is neither the provider of output service nor the manufacturer of final product as required under the CENVAT Credit Rules, 2004. The terms "final product" and "output service" ar .....

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