Utilisation of cenvat credit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 April 2013 Suppose X is a service provider and have output Service of Rs. 1,20,000 for A.Y 2013-14.His Service tax Liability is Rs.14,832.

His Input service is Rs.30,000 and Credit of Input Service tax on the same is Rs.3,708/-
However, X has not Utilised the credit of Rs. 3708 in AY 2013-14 and Paid Rs. 14,832(His Output Tax)

Can he Claim the credit of Input Service tax of Rs.3,708 in next year i.e AY 2014-15?

Whether it is mandatory to first utilise the Credit for payment of Output service tax?

Thanks in Advance...

CA. RAVIKUMAR

CA. RAVIKUMAR (Expert)
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18 April 2013 1) Yes, you can claim in the year 2014-15.

2)No, mandatory provision in the act to say that first utilize the credit for payment of out put of tax.

Reference case laws:
Bharat Heavy Electricals V CCE Chennai [2000 (122) E.L.T 256]

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Querist : Anonymous

Querist : Anonymous (Querist)

19 April 2013 Thanks a Lot:)

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