Cenvat of service tax paid on lease amount

As per proviso to rule 3(4) of CENVAT credit rules, 2004, CENVAT credit shall be utilized only to the extent of such credit is available on the last day of the month or quarter , as the case may be, for payment of duty or tax relating to that month or the quarter, as the case may be.

Therefore, the total CENVAT credit available till the last day of the month/quarter for which the Excise duty or Service Tax is to be paid can be utilized.

This is howvever subject to the other conditions prescribed under the CENVAT credit rules, such as - output service/product being taxable, no exemption being claimed, tax invoice being available etc.