Cancellation of Serviec Tax Invoice

[Asked by Guest]

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.

AI Summary

Cenvat credit time limit prevents reclaiming input credit after the prescribed period unless payment and reversal conditions are satisfied.
Cenvat credit must be taken within one year from the invoice date; failure to pay the provider within three months requires reversal of credit. Credit can be restored when payment of the invoice amount including service tax is finally made to the service provider. Cancelling and reissuing invoices to evade the one year limit is not an acceptable method, and cancellation after tax payment or tampering with invoice records is impermissible.