service tax & Excise query

[VISHAL PURI]

We are a SSI manufacturer & Service Provider of Maintenance & Repair. we have a audit objection i.e we registered with Service Tax on 01-04-2014 after cross limit 10 lacs, then we take the service tax credit on rent of building & other business auxiliary service aprox 0.72 lacs, then we cross the ssi exemption limit and registered with central excise on 20-10-2014. we regular take the credit on excise & service tax. we pay the service tax on service providing by cash but not utilzed the service tax credit, year end we adjust the service tax credit on excise duty payment. audit team object that we can not take the credit & utilized on service tax credit before central excise registration i.e oct-2014. kindly advice audit team is right or worng.

vishal puri

AI Summary

Service tax credit eligibility: input service credits can be utilised against excise duty after excise registration when nexus exists.
Credit of service tax on input services paid after Finance Act registration but before central excise registration may be carried forward and utilised against excise duty after excise registration if the services have a nexus to manufacture of excisable goods and there is no statutory prohibition; credits related to exempted goods during the accrual period remain ineligible.