Restaurant Service & CENVAT credit - a dissertation

No doubt Cenvat credit on inputs (other than falling under Chapters 1 to 22), capital goods and input services are available to restaurants, which are paying service tax.

It is NOT written in Rule 2C or any other rule to the effect that sub rules (1) to (3) of rule 6 of CCR,2004 are not applicable to Restaurants.

So, Restaurants availing Cenvat credit on common input services, which are used in provision of taxable service, exempted service and/or production of exempted goods are required to pay the amount (reverse the credit) under the provisions of Rule 6(3) of the CCR,2004, as discussed in the Article.

Shvetal Parikh 14/07/2015