Availment of service tax credit

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This query is : Resolved

CA. Srinath C (Querist)

20 December 2014 Good Morning Friends,
My query is:
One of my client is a private limited company have registered for Service Tax in the month of Feb-2014. My client have incurred Consultancy charges incl service tax prior to registration of Service tax i.e., before Feb-2014, & accounted for in the years 2012-13 & 2013-14. Whether the client can take input credit of Service Tax paid to vendors which is accounted before the service tax registration.
Kindly let me know the provision & or any case law if any in this regard.

Thanks
CA Srinath

Annu Agarwal

Annu Agarwal (Expert)

22 December 2014 As per my view cenvat credit of service tax paid before registration is available.Please refer the below judgement and case law:

The Hon’ble CESTAT, Delhi also relied upon the decision in the Metric Solution case and held that Cenvat credit in respect of inputs/ input services received by an output service provider during the period prior to his obtaining Service tax registration is admissible and denial of Cenvat credit on this ground is not correct.

Hon’ble CESTAT of New Delhi in the case of Actis Advisers Pvt. Ltd. Vs. CST. – Delhi - IV [(2014) 9 TMI 182 - CESTAT New Delhi]

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