Sir,
We have received Service Tax Invoice in 2014. we have not cleared the invoice and service Tax was not paid to the Service provider due to some disputes, but the Service provider had shown the particular Invoice as his turnover and paid the Tax liability in his Service Tax return. Now the dispute was settled. Can we cancel the Invoice and clear it and avail Cenvat credit because the period of 1 year was lapsed and no credit will be available on that Invoice.
Service Tax Invoice from 2014 Cannot Be Canceled for Cenvat Credit After Dispute Settlement, Per Cenvat Credit Rules. A discussion on a forum addressed the issue of whether a service tax invoice from 2014 can be canceled to avail Cenvat credit after a dispute was settled. The original invoice was not paid, and the service provider had already declared it in their turnover. The consensus among participants was that the invoice cannot be canceled to circumvent the one-year credit claim limit. The Cenvat Credit Rules stipulate that credit must be taken within a year, and tampering with the invoice is not permissible. Clarifications from relevant circulars were suggested for further reference. (AI Summary)
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