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SERVICE TAX QUERY

RICHA SHARMA (CA ) (202 Points)

03 October 2008

hi

My QUERY IS IF ONE APPLIES FOR THE REFUND OF SERVICE TAX CREDIT ONE OF THE PRELIMINIARY CONDITION IS THAT THE MANUFACTURER SHOULD NOT AVAIL CENVAT CREDIT ON IT.
IF A MANUFACTURER FULFILS THE SAID CONDITION AND APPLY FOR REFUND BUT LATER ON FOUNDS THAT THE NOTIFICATION IS NOT APPLICABLE ON IT CAN HE CLAIM CENVAT CREDIT ON THE SERVICES (FOR WHICH HE HAD EARLIER CLAIMED REFUND)AS THE SERVICES ARE CLEARELY HIS INPUT SERVICES.
PLEASE TELL ME THE PROCEDURE FOR THE SAME

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3 Replies

Dilip Darji (392 Points)
Replied 03 October 2008

There is no prescribed written procedure in such a situation.

If you are confident that the service availed by you are utilized for providing taxable out put services or used in the manufacture of excisable goods, you can very well avail CENVAT Credit. There is no time limit to avail CENVAT credit.

However to prove your bonafide, you must with draw the refund claim, in writting and obtain acknmowledgement.

First of all you must ensure your elligibility to avail CENVAT credit, before withdrawing refund claim. Once you withdraw refund claim, you would not be able to file it again.

DILIP DARJI