Cenvat Credit Admissibility

[Paras Ghorawat]

Dear All

We are a Multi-Product company and having a lot of factories in different geographies in India. Recently we have planned a to set-up a factory in Odisha and taken Excise Registration and Service Tax registration for same in 2011.

We are started to receive services like Security Services, Feasibility Reports and Human Health Assessment study, Environment clearance study and all. We are accumulating cenvat of that in a 'Recievbale GL Code'

Return has not been filled for Excise Registration yet.

Now in 2013 We have decided not to establish that plant there and planning to shift the same in another running plant which has registration no.

In 2012 Budget. Word 'setting up a factory' has been deleted from Input Service definition.

How can we take the credit against these services.

AI Summary

Company Shifts Canceled Plant Operations, Expert Confirms CENVAT Credit Transfer Valid for Pre-April 2011 Services A multi-product company with factories across India planned to set up a new facility in Odisha, obtaining excise and service tax registrations in 2011. They accumulated CENVAT credit for services like security and feasibility studies. However, the plant setup was canceled in 2013, and they planned to shift operations to an existing plant. Due to changes in the definition of Input Services in 2012, the company sought advice on credit transfer. An expert advised that CENVAT credit availed before April 2011 remains valid and can be transferred to another factory with notification to the jurisdictional Commissioner of Service Tax.