Utilization of cenvat credit of old pending bills.

[RAVI ANJARA]

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?

AI Summary

Cenvat credit eligibility limited by historic rule regime; may require litigation to claim credit, potential restrictions apply.
Cenvat credit on 2001-2003 invoices depends on the historical credit regime: invoices predating the August 2002 credit rules generally cannot support input service credit; credit available from 16 August 2002 was subject to matching/payment conditions that evolved until time limits were later introduced. RCM and later cesses do not apply retrospectively. Point of taxation fixes the applicable tax rate by invoice/service date. Recovery of credit where invoices were held by arbitrator may require litigation and proof of inability to avail earlier.