Credit of central excise eventhough assesse not having Excise registration but having ST registration

[Asked by Guest]

Hi

Can assessee take credit of excise duty paid even though he doesn't have excise registration but having service tax registration.

Thanks.

[KASTURI SETHI]

Yes. A person registered with Service Tax can take credit of Central Excise duty paid on inputs.

but assesse don't have excise registration then he is eligible for credit of excise duty.

[KASTURI SETHI]

Credit is allowed across the Board.

Can i get any section or rule for the same?

Thanks.

[Mr Rao]

Dear querist,

I support the views of Shri Sethi ji, an expert. Once you are registered under Service Tax , you are eligible to avail credit of excise duty for payment of service tax.

[KASTURI SETHI]

For the for the first time on 23.9.2004 credit was allowed across the board. Notification can be traced out during that period. Basic point is that input or capital goods on which duty has been paid must be used in or in relation to providing taxable output service.

[KASTURI SETHI]

It is sufficient that you are registered with ST. For example :- a person who is registered with CE but not with ST can avail credit of input service provided that is in or in relation to the manufacture of dutiable final product. Analogy is same . Vice versa is allowed. This has been brought into force w.e.f.23.9.2004.

Thanks for quick reply from your end.

AI Summary

Credit of central excise duty available to service tax registrants when inputs are used for taxable services.
A person registered for service tax may avail credit of central excise duty on inputs and capital goods without central excise registration, provided those inputs or capital goods are used in or in relation to providing taxable output services; this cross-utilisation became effective from 23.9.2004 and operates reciprocally for central excise registrants claiming credit of input services used in manufacture of dutiable final products.