Credit of Input Service provided before 01.04.2011 but Service Tax Invoive raised in April'2011

[BrahmaputraCrackerandPolymerLimited AGovt.OfIndiaEnterprise]

In our organization, the works contract was awarded to a contractor for construction of Raw Water Reservoir and Product Warehouse during the year 2010.

The contractor started the works in November' 2010 and raised their 1st Running Bill in the month of February' 2011. We paid the subject running bill during the month of March' 2011.

The contractor raised their service tax invoice against the above service in the month of April' 2011 along with the deposit challan. The subject service tax invoice was paid in the month of May' 2011. We accounted the Service Tax Amount under CENVAT Claim at the time of payment. The return against this claim was filed in the month of January'2012.

The question is whether we have rightly availed the CENVAT Credit as there was a significant changes in service tax valuation rules in 2011 budget.

AI Summary

Government Enterprise Correctly Availed CENVAT Credit for Pre-2011 Services Despite 2011 Budget Rule Changes Brahmaputra Cracker and Polymer Limited, a government enterprise, inquired about the correct availing of CENVAT Credit for a service tax invoice raised in April 2011 for services provided before April 2011. The contractor began work in November 2010 and issued the first bill in February 2011, which was paid in March 2011. The service tax invoice was issued in April 2011 and paid in May 2011, with the CENVAT claim filed in January 2012. The response from Mariappan Govindarajan affirmed that the CENVAT Credit was correctly availed despite changes in service tax rules in the 2011 budget.