Cenvat Credit on Commission Service after changes of Cenvat Credit Rules

[Emco Ltd.]

Dear Sir,

With reference to changes in Union Budget 2014 under Notification No. 21/2014-NT Dated 11.07.2014, amended in Rule 4(A) , we should be availed Cenvat Credit Service Tax within a Six Month from date of issue of documents date. The effective date is 01.09.2014.

Our Query is that, while reconcile the GL, we found that One of the Invoice Dated 19.02.2014, we are not availing Cenvat Credit of Service Tax and it would be major amount of Service Tax. And Such Invoice is connected with Commission Service provided to us.

Can we avail Cenvat Credit of Service Tax in the current instant i.e. in the Month of Oct.2014 ? because the amended rules effected from 01.09.2014.

Whether it is right availment of Cenvat Credit or otherwise as per Cenvat Credit Rules ?

Kindly advice in the matter for which we will be act accordingly.

Regards

Amit Parmar

AI Summary

Emco Ltd. challenges Cenvat Credit eligibility for commission service invoice dated 19.02.2014 under amended rules effective 01.09.2014. Emco Ltd. inquired about the eligibility to claim Cenvat Credit on a commission service invoice dated 19.02.2014, following amendments to the Cenvat Credit Rules effective 01.09.2014. The concern was whether this credit could be claimed in October 2014, given the six-month limit from the invoice date. Shivkumar Sharma advised that credits older than six months as of 01.09.2014 are not available. Emco Ltd. sought clarity on this rule's application. Pradeep Khatri suggested reviewing the Cadila Judgment, noting that Cenvat Credit may not be allowed if the commission relates to the sale of goods.