A Ltd company has service tax credit of50000.00 avilable, but before filing the service tax return the company was takenover by B Ltd. Can B Ltd. claim the service tax credit in their return or should A Ltd. file it's return and claim50000.00 as refund?
According to me, in your case, Cenvat credit neither be transfer nor refund. If I am wrong, please correct me.
Please see Rule 10 (2) of the cenvat credit rules which allow for a transfer. Refund is available only to exporters.
Section 11B of Central Excise Act, 1944 is made applicable to service tax refund matters. No such condition regarding "Exporters" is stated. and as per rule 10 (2) it can also be transferred to the transferee company. So, are both the options open to A Ltd?
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