Inpurt credit taken on sercie tax charged by commission agent-reg

[Kantilal kachhadiya]

We have taken input credit on service tax charged by commission agent but not utilised till, final verdict of Honorable Supreme court in the case of Ahmedabad-II Vs. M/s Cadila Healthcare Ltd. But ,recently ,in the cenvat credit Rules-2004, Notification No.21/2014-Central Excise(N T) provided that the manufacturer or the provider of output service shall not taken CENVAT credit after six months of the date of issue of any of the documents specified in sub-rule (1) of rule 9.What should I do .whether we utilised the input credit on serce tax charged by commission agent or wait till final decision of supreme court in the case of M/s Cadila Healthcare Pvt Ltd ?

[YAGAY andSUN]

Dear Kantilal,

Its all depends on your risk appetite. But in our opinion you must have wait and watch policy in this regard. If you utilize it and in the event of any adverse adjudication, then, you would have to pay the statutory interest along with reversal of CENVAT credit as law say "availed and Utilized".

Regards,

Sameer Malhotra - Consultant

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

[Mahir S]

Sir,

Prima facie based on the relevant facts and evidence, such credit not is admissible, hence better to avoid availment of such input credit.

[MUKUND THAKKAR]

Sir,

please follow suggestion is given by Mr. Naveed. you are alone so many people waiting decision. "aache din aayenge"

AI Summary

CENVAT credit timing: exercise caution before claiming credit pending judicial resolution and due to a new statutory time-limit rule. Availability of input credit for service tax charged by a commission agent is contested and now constrained by Notification No.21/2014, which bars claiming CENVAT credit after the statutory time limit from issuance of specified documents. Utilising the credit before the Supreme Court decision risks mandatory reversal and payment of statutory interest if adjudication is adverse; forum advice recommends a cautious, wait-and-watch approach or avoidance of availment given prima facie inadmissibility.