CENVAT CREDIT OF CUSTOMS & EXCISE DUTY PAID ON CRANES

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Ankit Satia (Querist)

19 November 2008 Facts:
One of the my clients engaged in the business of renting/hiring the cranes to various companies under an contact & collects the service tax on the same as applicable from the enactment of finance act 2008(i.e. 15.05.08).He has registered himself under service tax on 19/06/2008.

He has imported 6 cranes on 06.05.08 & 5 cranes on 29.05.08 by paying the excise & customs duty.

Querries:
1) Whether he can avail the credit of the duty paid on the cranes imported
a) Before the date of registration &
b) Before the date on which the service tax became applicable to him

2) Service tax paid on the input services
a) Before the date of registration &
b) Before the date on which the service tax became applicable to him

Please reply in detail & as early as possible.

Nirav Vora

Nirav Vora (Expert)

19 November 2008 Hi.

Excise duty paid on Capital Goods can be utilized upto 50% in the year of purchase and balance can be in subsequent year.
However the impute credit should be utilized within reasonable time.
There is no bared to utilize the credit available before registration.

Ankit Satia

Ankit Satia (Querist)

20 November 2008 Thanks Nirav Vora. But can you provide me some legal decisions or other evidances on which my client can take the credit.

Further the question comes to my mind that my client is providing such services from last 4 years but it became taxable from the 15.05.08 thus whether he can get the credit from
a) 01.04.08 or
b) from the date of providing such services i.e. from last 4 years or
c) from 15.05.08
d) From Date of Registration