Sir, We(a PSU) have around ₹ 98 lacs of bills issued by a PSU for under ground cable laying work in 2001 to 2003. The matter was with arbitrators for around 12 years and now the arbitrator has ordered to pay the bill now. The invoices were issued to us in 2001 to 2003 but it was seized due to legal disput. Service tax has been claimed in invoices at 8%. Now the quary is : 1. Can we take the cenvat credit under input service ?
2. Should we considre the RCM/SBC ?
3. Service tax has been claimed at the rate of 8% (Rate at that time) , we are bound to pay any service tax under any rules?
PSU Explores Cenvat Credit for 2001-2003 Bills; Experts Debate Eligibility Under Cenvat Credit Rules, 2002 and 2004. A public sector unit (PSU) inquired about utilizing Cenvat credit for bills issued between 2001 and 2003, which were delayed due to arbitration. Experts discussed whether Cenvat credit could be claimed, considering service tax was charged at 8% at that time. It was noted that Cenvat Credit Rules, 2002 and 2004, along with subsequent amendments, affect eligibility. Some experts argued that credit might be claimed for invoices post-16.8.2002, subject to conditions, while others emphasized the need for litigation to secure credit. The consensus was that current service tax rates do not apply retrospectively, and legal advice is essential for resolution. (AI Summary)
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