Category Archives: Cenvat Credit

Rule 7 Cenvat Credit Rules 2004 – Manner of distribution of credit by input service distributor

1 [Manner of distribution of credit by input service distributor. 7. The input service distributor shall distribute the CENVAT credit in respect of the service tax paid on the input service to its manufacturing units or unit providing output service or an outsourced manufacturing units, as defined in Explanation 4, subject to the following conditions, namely… Read More »

V.S. Datey -Central Excise Law & Practice – 26th Edition 2017 Book

Central Excise Law & Practice (26th Edition 2017-As Amended by Finance Act 2017) Hardcover – 2017 by V.S. Datey (Author) Also Incorporating Central Excise Valuation and Classification Cenvat Credit Central Excise Procedures SSIs/Job Work Price Rs 1507. Click to buy online Hardcover: 1320 pages Publisher: Taxmann Publications Pvt. Ltd.; 26th Edition edition (2017)  

Cenvat Credit available on input services even if depreciation is also claimed on it

CESTAT, MUMBAI BENCH Shree Pandurang SSK Ltd. v. Commissioner of Central Excise, Pune-III RAMESH NAIR, MEMBER, (J.) APPEAL NO. E/592 OF 2012 ORDER NO. A/85139/17/SMB DECEMBER  7, 2016 Sanjay Hasija, Superintendent (AR) for the Respondent. ORDER Ramesh Nair, Member (J.) – The issue involved in the present case is that appellant availed Cenvat credit in… Read More »

CENVAT Credit (Sixth Amendment) Rules, 2016

THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] MINISTRY OF FINANCE (Department of Revenue) NOTIFICATION New Delhi, the 14th May, 2016 No. 27/2016 – Central Excise (N.T.) G.S. R. 512(E).—In exercise of the powers conferred by section 37 of the Central Excise Act, 1944 (1 of 1944), section 94 of the Finance Act, 1994… Read More »

MS Steel Angles /parts CENVAT not available to Infra Companies

The Larger Bench of New Delhi CESTAT, held that the passive infrastructure companies hiring out telecom towers, to telecom companies, taxable under ‘Business Auxiliary/Support Services’, are not eligible to claim CENVAT Credit of MS Steel Angles/parts, pre-fabricated shelters parts, etc. used in erection of such towers. In the said case, the assessees were providing ‘business… Read More »

Internal Audit services eligible for CENVAT Credit

Held In the case of DRP Malleables (P.) Ltd.  the Tribunal held that Chartered Accountant Service is specifically covered under the scope of input service and the assessee is eligible for availing credit. In my considered view, the Chartered Accountant Service related to day-to-day service cannot be reason for denial of CENVAT credit. So, the… Read More »

Amendments in CENVAT Credit Rules

Amendments in CENVAT Credit Rules The CENVAT Credit Rules have been amended vide Notification Nos. 01/2016- CX (N.T) and 02/2016- CX (N.T), both Dated: February 03, 2016 as follows: For the purpose of definition of Input Services,sales promotion would include services by way of sale of dutiable goods on commission basis. The condition of allowing only 85% of… Read More »

CVD on vessels imported by ship breaking units : CBEC issued Circular

Circular No.-1014/2/2016-CX Dated the 1st February, 2016 F. No. 6/14/2014-CX.I (Pt.) Government of India Ministry of Finance Department of Revenue Central Board of Excise & Custom *********** New Delhi, dated the 1st February, 2016 To Principal Chief Commissioner/ Chief Commissioner / Principal Commissioner of Central Excise and Customs (All) Web-master,CBEC Madam/Sir, Subject: Inclusion of show… Read More »

Amendment in CENVAT Credit Rules 2004

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)] GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) Notification No. 01/2016 – Central Excise (N.T)  New Delhi, the 1st February, 2016 G.S.R.(E).-   In exercise of the powers conferred by Section 37 of the Central Excise Act, 1944 (1 of 1944), the… Read More »

No CENVAT Credit if duty paid by DEPB Scheme

Unless Countervailing Duty (CVD) had been paid in cash, the assessee was not entitled to take credit based merely upon the debit entry in the passbook under DEPB Scheme HIGH COURT OF MADRAS Mohan Breweries & Distilleries Ltd. v. Commissioner of Central Excise, Pondicherry Commissionerate V. RAMASUBRAMANIAN AND T. MATHIVANAN, JJ. C.M.A. NO. 386 OF… Read More »

Cenvat Credit not allowed if on amount of Service charges recovered from employees

No cenvat credit should be allowed on amount attributable to service charges which was collected from its employees CESTAT, MUMBAI BENCH Castrol India Ltd. v. Commissioner of Central Excise, Raigad RAMESH NAIR, JUDICIAL MEMBER ORDER NO. A/1529/2015/SMB APPEAL NO. E/86150/2013-MUM. JUNE  15, 2015 Haren M. Gandhi, Manager Indirect Taxes for the Appellant. Ashutosh Nath, Asstt.… Read More »

Revised monetary limits for arrest in Central Excise and Service Tax

Circular No. 1010/17/2015-CX F. No. 96/54/2014-CX.1 Government of India Department of Revenue Central Board of Excise & Customs New Delhi New Delhi, the 23rd October, 2015 All Principal Chief/Chief Commissioners of Central Excise & Customs, All Principal Chief/Chief Commissioners of Central Excise, All Principal Chief/Chief Commissioners of Service Tax, All Principal Director/Directors General. Sir/Madam, Sub:… Read More »

Cenvat Credit on Tower erection and installation

Prima facie, telecom service providers : (a) cannot take input or capital goods credit of credit of tower parts and shelters; however (b) may take credit of ‘Erection, Installation and Commissioning’ and ‘Commercial or Industrial Construction’ services used for erection and installation of towers and shelters HIGH COURT OF MADRAS Aircel Ltd. v. Commissioner of… Read More »