Refund of CENVAT credit pertaining to the period prior to registration cannot be denied

Last updated: 03 June 2023

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The CESTAT has ruled that CENVAT credit accumulated before premises registration cannot be denied, provided the conditions for claiming the credit, such as payment of tax and receipt of services, are met. The tribunal found that non-registration of premises is not a statutory bar to claiming input tax credit. Furthermore, even if credit was availed slightly before tax payment, it should not be disallowed if the substantive conditions for eligibility are satisfied.

Court :
CESTAT, Chennai

Brief :
The CESTAT, Chennai in Commissioner of Service Tax v. M/s. Ad2pro Global Creative Solutions Pvt. Ltd. [Service Tax Appeal No. 40175 - 40177 of 2017 dated May 26, 2023] has held that, denial of CENVAT credit for non-registration of premises is not justified as per Section 11B of the Central Excise Act, 1944, ("the CE Act"). Further held that, when conditions like payment of tax and receipt of service are satisfied, in such case credit cannot be denied on the basis that the credit was availed few days before the payment of tax.

Citation :
Service Tax Appeal No. 40175 - 40177 of 2017 dated May 26, 2023

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1 Year PLAN

1999

(Excl. of GST ₹359)

2 Years PLAN

3499

(Excl. of GST ₹629)

BEST VALUE

3 Years PLAN

4999

(Excl. of GST ₹899)

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Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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