Cenvat credit of service tax deposited under reverse charge machanism

[prabhu Chauhan]

Whether cenvat credit is available on the service tax deposited under reverse charge mechanism when the lapse in payment is indicated by service tax audit team But Before issue of SCN ?

This case will fall under Cenvate Rule 2004Rule 9 (1)e.

AI Summary

Cenvat Credit Eligibility for Reverse Charge Service Tax: Rule 9(1)e Allows Credit Before Show Cause Notice Issuance A discussion on a forum addresses whether Cenvat credit is available for service tax paid under the reverse charge mechanism when a lapse is identified by a service tax audit before the issuance of a Show Cause Notice (SCN). Participants generally agree that credit is admissible, referencing Cenvat Rule 2004 Rule 9(1)e. There is a debate about whether Rule 9(1)b and 9(1)bb, which address fraud or misrepresentation, affect eligibility. It is concluded that the service receiver can claim credit based on the payment challan, and these rules should not be intermingled.