Utilisation of ccr

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Bikas Chapagain (Querist)
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02 April 2013 mine query is regarding service tax ....can we use adjust our liability of interest and penalty under service tax against our input cenvat credit? please do ans along with relevant section and cases if any..thanks.

Ashish Vaish

Ashish Vaish (Expert)
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02 April 2013 No, Cenvat cannot be utilised for payment of Interest or Penalty. They have to paid in cash. It is a settled law. Read Rule 3(4) of CCR, 2004.

Bikas Chapagain

Bikas Chapagain (Querist)
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03 April 2013 MR.Ashish Vaish i cordially accept ur ans ...i have been through rule 3(4) but still couldnt sort out regarding the matter of intt and penalty ..wil be thankful if u could futher clearify me regarding this ..any link if such will be really helpful.

Ashish Vaish

Ashish Vaish (Expert)
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03 April 2013 Dear Mr Bikas,
Rule 3(4) of CCR, 2004 specifies all the purposes for which cenvat can be utilised. It no where specifies that it can be used for payment of Interest or Penalty therefore it can not be used for the same. It is well settled principle by various courts in series of judgements.

Bikas Chapagain

Bikas Chapagain (Querist)
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03 April 2013 thnx for your help..hopefully we will get in touch regarding further issues in indirect tax in upcoming days..have nice time.

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