Cenvat utilisation

Possible, provided pay interet for the delayed period. Interest shall be paid by cash.

Can you refer any case?? or provision from the act???

Originally posted by : Ankit
	We have a client who has provided a service in the month of July and didnot pay tax thereon. In the subsequent months i.e. August and September assessee receives a service and pays service tax. The Assessee has paid service tax in October for the month of July after deducting the Amount of service tax paid in the month of August and September(CENVAT). IS THIS CENVAT UTILISATION OF SUSBSEQUENT MONTHS PERMISSIBLE? Will assessee will pay the CENVAT credit availed?? Is there any provision for availing the CENVAT when we pay the serice tax late?? What About Interest???

he is entitled to utilize cenvat credit balance as on 31 july only, for payment of july or earlier. later period input credits are not eligible for payment of earlier periods, 

he has to discharge his liability in cash only, if input credit is not available on end of july.

There is no provision for adjustment of credit for future period under law. The amount payable as on that date along with interest has to be paid. [ 13% for 10-11 and 18% thereafter.]

which means that the cenvat he has utilised has to be paid as tax with intrest???

If you have taken the credit in the month of September and shown in the ST-3 for that half year, I feel that you can utilise the same in the month of October..
 

thaks for the replies