Cenvat credit

No. CENVAT credit cann't be setoff against  Service Tax Liability. U hv to pay in cash to discharge the liability.

Central credit w.rto Excise duty paid on Inputs and Service tax paid on Input services and Excise duty paid on capital goods can be availed as credit and can be utilised for the payment of Excise duty on Finished goods or Service tax on output services.

One to one correlation not required and Cenvat credit A/C is a pool. The only condition is that EC and SHEC availed can be utilised only for payment of EC and SHEC.

Click on the bare Act portion: https://www.cbec.gov.in/excise/cxrules/new-cenvat-rules.htm

Refer Rule 4 please.

Rule 3(4) of CCR 2004 CENVAT cr can be utilised for payment of Service tax on output service

So i feel CENVAT cr can also be utilise for payment of Service Tax payable

Originally posted by : Sandeep Chandak
	No. CENVAT credit cann't be setoff against  Service Tax Liability. U hv to pay in cash to discharge the liability.

hai sandeep

thanks for your replay

may i know any notification regarding this, because i clarified with department people they explined me service tax credit can be utilized for excise payment but vice versa not posible

Cenvat credit arsing from  manufacturing activity can be utilsed for payment of service tax and vice versa.

Originally posted by : CA Unnikrishnan Nair N
	Cenvat credit arsing from  manufacturing activity can be utilsed for payment of service tax and vice versa.

dear sir

thank you for your replay,

if you don't mind can you provide any notification relating to this case.

cenvat credit rules 2004 is common for both excise and service tax. However if the assesee avails any exemption as under ............

a) avail exemption of 10L for small service provider / composition of WCT ...............then service tax credit upto the extent of such events is not available for input credit 

b) avail SSI benefit of 150 Lacs , then no input credit on input / input service is available to him, under exemption period.

if both service tax and excise duty is payable without any exemption notification then there is no bar to cross utilize each other as per CCR 2004