Availment of cenvat credit before service tax registration

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Guest

Guest (Querist)

10 July 2014 Respected experts,
i want ask that if cenvat credit is accumulated from before service tax registration can it be avail now or benefit of that cenvat credit get now ? if yes under which case law or law of provision please help me.

CA Pradeep Sharma

CA Pradeep Sharma (Expert)

10 July 2014 Hello Dear,

You can take benefit Cenvat Credit is accumulated before service tax registration.

Because department has clarified that an assessee can make payment of service tax and can also file service tax returns even for the period during which his registration application is pending with the department.

and according to Rule 3(4) of CCR 2004 CENVAT Credit can be utilized for payment of service tax

The Hon’ble Tribunal , Chennai vide its judgment dated 13.08.2012 in case of, M/S Central Bank of India Vs Commissioner of Central Excise & Service tax, Coimbatore 2012-TIOL-13

No Time Limit for taking CENVAT Credit: Nowhere in the Central Excise Act as well as in the CENVAT Credit Rules prescribed any period in which credit has to be taken. Although it is mentioned in the CENVAT Credit Rules that assessee can take the credit immediately, but there is no prescribed time limit either in the CENVAT Credit Rules or in the Central Excise Act. The observation made by both the lower authorities that credit is to be taken within a period of one year is totally incorrect and unacceptable

So, as per the above discussion we can say that CENVAT Credit can be taken at any point of time as required. .

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