Availment of service tax credit

[Guest]

company A has input service tax credit of Rs. 2 crores in month of april and may 09 it has parked this amount in the clearing account the company has substantial credit of capital goods queries is it required to avail the service tax credit by posting from clearing account to availment account and then is it required to utilise this credit in financial year 2009-10 itself or it can carry it forward for utilisation in FY 2010-11 is there any time limt for availment and utilisation of service tax credit or once credit is availed (when the payment for input services has been made) it can be utilised at any time thereafter say after 3 years

AI Summary

No Time Limit for Utilizing Cenvat Credit Once Availed; Advisable to Avail Within One Year of Payment. Company A queried about the process and timeline for availing and utilizing service tax credit, specifically whether it must be transferred from a clearing account to an availment account and used within the financial year 2009-10 or if it can be carried forward to 2010-11. The response clarified that once cenvat credit is availed, there is no time limit for its utilization as long as taxable output services or excisable goods are provided. However, it is advisable to avail the credit within one year of making payment for input services, based on certain judicial interpretations.