Cenvat Credit Whether Eligible as input

Originally posted by : CA Chintan Vyas
	I ask my question in form of below illustration. A:- Service Receiver B:-Service Provider   B provide service of commission. It charge and collect the amount from A since last 4 years All of sudden B know that it is liable for service tax so it paid service tax on receipt of all last 4 year commission. B send the challans to A to reimburse service tax paid by B of last 4 years.   Whether A can claim it as expenses or input service tax credit ??

B has freedom to get 1st lacs exemption on commission received. and spread over 4 years its 40 lacs, so we dont think that B has to charge for arear years. 

B can pay the whole of service tax as per his own wish but can not claim from A for preceeding years, 

A can not take credit of such commission based service tax , as it does not qualify for "input services"

In my View , first of all B has to deposit the  last four yaer Service Tax with Interest and If A reimburse the payment of service Tax to B then only he can take the Cenvat credit of service Tax.