Service tax credit

[manish kumar]

Sir,

A builder has Shown closing balance of Cenvat credit in their April to June, 2017 ST-3 return of apuprox. 05 lakhs & now their project has been closed because they have issued B.O.C. for their building project. & they have not claimed any ITC credit in Trans-1. Now during audit if liability comes for payment of Service tax payment , can they utilise their closing balance of Credit for payment of Service Tax.

AI Summary

Builder Seeks to Use Unclaimed Cenvat Credit for Pre-GST Liabilities; Experts Advise Legal Action and Potential Appeals A builder has a closing balance of Cenvat credit from April to June 2017, amounting to approximately 5 lakhs, which was not claimed in the Trans-1 form after the transition to GST. During an audit, if a service tax liability arises, the builder seeks to use this credit. Experts suggest that while the credit was not transferred to GST, it might still be possible to use it for pre-GST liabilities through legal action. They recommend applying for relief, potentially filing an appeal if initially rejected, as similar cases have been challenged in various High Courts.