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Introduction:

Cenvat credit rules 2004 has merged  the credit of service tax paid on input services and of excise duty on inputs and capital goods. consequently the same set of rules applies to both a manufacturer and also to a service provider. However the credit availability to manufacturer is substantially more than that available to the service providers. 

A manufacturer could avail credit of service tax paid on eligible input services and a service provider could also avail...

The Government is committed to pass the GST bill in the winter session of parliament this year  

(2105). However considering the many stages post the passing of the bill of: recommendation of GST council, passing of model law in States, IT infrastructure in few States, change management (awareness and training of tax administration, assessees and general public) the target date of April 2016 is not probable. GST implemented in the middle of the year maybe a major...

SUPREME COURT

1. Both inputs and final products are entitled for rebate under Rule 18 of Central Excise Rules (M/s Spentex Industries Ltd 2015-TIOL-239-SC-CX)

• Background: Assessee filed claim of rebate on finished goods as well as material used in manufacture of final products. Department denied rebate claim stating that only one of the claim is admissible as Rule 18 of Central Excise Rules uses the word “OR” between two type of rebates.  
• Issue: Whether rebate claim can be...

Having discussed on the disclosure of availment and utilization of credit in previous two articles, we shall move on to examining applicability of Rule 6 of Cenvat Credit Rules to a service provider and its disclosure in the Return.   

In any value added tax system, credit of tax paid at input stage is eligible for adjustment against output liability. Cenvat credit rules have also been formulated based on the same principles (though have been made very complicated). One can...

In the previous article, we had discussed regarding availment of credit while filing of ST3 Return. It has been very encouraging to receive large number of queries on various aspects related to service tax return filing. To continue the series, in this article we have discussed disclosure of reversal/utilisation of credit.  

Once eligible credit has been availed, it becomes part of a pool out of which credit can be utilised to pay output liability. There is no correlation required...