CBEC doesn't know under what Section Service Tax is Levied!

Sir,
One of the conditions under the Notifications is, no credit of such excise duty or additional duty of customs on inputs or service tax on input services has been taken by the manufacturer of such goods (and not the buyer of such goods). It appears that "such excise duty or additional duty...." refer to the appropriate duty paid mentioned in the preceding part of the Proviso. How is it possible that the manufacturer of inputs having paid appropriate duty, takes credit of 'such excise duty'. Obviously,he can not take the credit of duty paid on the goods manufactured by himself which are inputs to the buyer of the goods availing Notifications like 1/2011-CE and 12/2012-CE. It is not clear why a condition of not taking credit is inserted.

rrkothapally rrkothapally 22/07/2015