Cenvat credit utilisation

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An Assessee providing 96 % Export Service and 4% Taxable output Service . Kindly suggest some one to effective utilisation of cenvat credit modes.
Replies (5)

Refund under Rule 5 of Cenvat Credit Rules

Thanks Mr.Nagendra,

My doubt id Instead of applying for refund, can adjust as cenvat for other services payable 

 

 

As of now I am not aware of any other options to utilise such credits. 

Yes, should apply for refund.

Dear Mr. Ravi,

CENVAT credit taken on input services used for provision of export of service can be utilized against the service tax payable on other services.

There is no provision in the law hindering to do such. Further, it has been decided in many case laws that nexus b/w input service and output service shall be considered for the purpose of availment of CENVAT credit only, there is no such requirement for utilizing the credit.

As per the above, you can utilize the credit on input services against the other service tax payables. However, even after utilizing the credit, if there lies a huge balance of CENVAT credit, you can go for refund. (Rule 5 of CENVAT credit Rules)

Hope it meets your requirements 


CCI Pro

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