CENVAT CREDIT

[BHARAT COKING COAL LIMITED]

THE ASSESSEE COMPANY IS ENGAGED IN EXTRACTION OF COAL ON WHICH EXCISE DUTY WAS IMPLEMENTED FROM MAR'11 FOR THE FIRST TIME. HOWEVER THE REGISTRATION AS INPUT SERVICE DISTRIBUTOR WAS TAKEN IN NOV'13. SOMEHOW THE COMPANY DID NOT PASS A HUGE AMOUNT OF CENVAT CREDIT ON INPUT SERVICES (MAINLY ON CISF SERVICES) FOR THE PERIOD UPTO NOV'13. IN THE MEAN TIME A NOTIFICATION CAME IN SEP'14 RESTRICTING THE PERIOD OF CENVAT CREDIT ON INPUT SERVICES UTO 6 MONTHS & SUBSEQUENTLY WAS RAISED TO 1 YEAR.

NOW CAN WE TAKE THE CREDIT TODAY FOR THE PERIOD MAR'11 TO OCT'13 ON THE PLEA THAT THE TIME PERIOD IS ONLY APPLICABLE ON INVOICES ISSUED AFTER 6 MONTHS/1 YEAR. A HUGE STAKE OF THE COMPANY IS INVOLVED IN THIS. KINDLY GIVE YOUR VALUD SUGGESTION.

REGARDS

CA C.S. CHAWLA

AI Summary

Coal Company Considers Legal Action to Claim CENVAT Credit for Pre-Nov 2013 Input Services Despite 2014 Restrictions A company engaged in coal extraction is seeking advice on claiming CENVAT credit for input services prior to November 2013, despite a 2014 notification limiting credit claims to 6 months, later extended to 1 year. Experts suggest pursuing litigation to claim the credit, as the company has paid excise duty and provided taxable output services. They recommend exhausting departmental channels first and, if necessary, challenging the decision in the High Court under Article 226 of the Constitution. The discussion emphasizes the importance of legal action due to the significant financial stake involved.