Cenvat credit on interest paid on service tax

CA M Vamsi Krishna (Employee) (23 Points)

07 February 2014  

The service provider in the bills given to the service receiver has not charged the Service tax,
however after realising that the services provided by the service provider is chargeable to service tax
has raised a revised bill by calculating the service tax liability and also included the Interest on service tax.

Query: a) Is it possible to take Cenvat credit on the Interest paid on service tax by the service receiver, as the
service provider was at fault of not including the service tax in his earlier bills.

b) What is the action that can be taken by the service receiver to get the refund of the Interest paid on service tax?