Availment of Cenvat Credit

[gopal Bhargawa]

The assessee get registered himself after the end of financial year( Say 2012-13 i.e in Financial Year 2013-14)  with the service tax department but liablility to pay service tax and register with department arise in subsequent financial year (i.e 2012-13).

Now the question arise that  if assessee pays the service tax of Previous year i.e 2012-13 then can an assesse to whom the invoice is issued after registration with service tax get Cenvat Credit of the same or not???????

 

[PAWAN KUMAR]

Dear Friend,

The question is not clear at all. please explain whether you are a service provider or service receiver for the service in question.

 

[gopal Bhargawa]

The Assessee is a service provider....

[YAGAY andSUN]

CENVAT credit will be available since service tax has been paid and this is subject to the provisions of CENVAT credit Rules, 2004.

[Shyam .]

Registration is not pre-condition of credit.

As per the case law "Knowledge Factory Pvt Ltd - (2010 (8) TMI 444 - CESTAT, MUMBAI)"  Assessee was a service provider initially he did not pay any ST but when department pointed out then he becomes ready to pay ST under "Business Auxiliary Service" after making adjustment towards CENVAT credit. Department disallowed credit on ground that he had failed to take registration under ST provision. Tribunal upheld the credit by pointing out that there was no condition under CCR, 2004 that registration was pre-conditioned for taking credit.

Thanks,

Shyam 

AI Summary

Cenvat credit: payment of service tax enables credit even if registration occurred later; registration is not a precondition. Cenvat credit is available to a service provider who pays service tax for a prior liability even if registration was obtained later, because registration is not a precondition under the Cenvat Credit Rules; entitlement depends on satisfaction of the Rules' substantive and procedural requirements and appropriate documentation.