29 August 2011
In relation to the subject matter, we state that
1. Since 2008-09, we (Siemens Limited, Kharagpur, West Bengal) are going for factory expansion wherein new industrial factory building are also built in. The factory expansion is still under progress
2. The civil construction services are provided in our factory by Trans Tech Turnkey Pvt. Ltd., Pune, Maharashtra.
3. In this regards the provider of services has raised bill for the services provided. Details in regards to this bill are
v That the service is provided for expansion of existing facility for the civil construction. This service is falling under section 65 (105) (zzq) i.e. Commercial & industrial Construction. Service provider is registered for this service u/s 69 of the Finance Act, 1994.
v That the service is actually provided / completed within September 2010 for which the bill / invoice for such service provided is dated 03.09.2010.
v That the service provider bill is also certified by our (i.e., Siemens) personnel on 03.09.2010 and the bill is processed on 15TH Sep 2010 and is subsequently paid-off in full
v That although the said service bill was paid-off but CENVAT credit of the service tax involved in the bill is still pending. As a matter of fact, we do understand that there is a substantial delay on our part for availing CENVAT credit of the service tax so paid-involved in the bill.
4. In this very regards, our query is w.r.t., the timing of CENVAT credit of the Cenvat credit vis-à-vis the amended definition of "Input Service" w.e.f.., 1.3.2011 (Notn 3/2011-C.E. dt. 1.3.2011). ==> having regards to the amended definition of "Input Service" w.e.f., 1.3.2011 wherein services used for civil construction have been specifically excluded à that for such civil construction services so provided within Sep 2010 (i.e., before 1.3.2011) and billed and also paid in full by Sep 2010 … the CENVAT credit of service tax which is still pending availment, can now be availed
5. Our contention in this regards is (a) that the civil construction services so received in factory were eligible input services prior to 1.3.2011 (b) that the invoice / bill for such services raised in Sep 2010 and the bill fully processed and paid within Sep 2010 (c) but for reasons … the CENVAT credit of service tax paid in relation to such services is still pending and (d) YES, PENDING CENVAT CREDIT OF SERVICE TAX CAN NOW BE AVAILED FOR THOSE SERVICES (which stood eligible input services) PRIOR TO 1.3.2011
6. In other words, for those very services which were provided before the amendment in definition of "Input service" w.e.f., 1.3.2011 and which were the then eligible input services, but since the availment of CENVAT credit in books is after the amendment in CCR, whether it is now advisable on our part to take CENVAT credit OR not to take CENVAT credit
29 August 2011
As per my opinion, This is a disputed Credit, however, looking into the volume of Cenvat Credit, you may write to your Jurisdictional Superintendent with a CC to Assistant Commissioner about your intention to avail credit. Your have also enclose copies of all relevant documents.
You have to wait for their reply for a reasonable period, and after that you may take the credit
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