Utilising Cenvat Credit for making service tax payment

[Guest]

can cenvat credit not availed for the previous year 2005-2006 be availed while making payments of service tax of financial year 2006-2007. also if cenvat is not included for making payment of one month, then can it be taken regard while making payment of next month

[Surender Gupta]

There is no restriction on availmnet of Cenvat Credit belated. However, time gap must be reasonable i.e. maximum one year and delay must be genuine.

AI Summary

Cenvat credit belated availment permitted within a reasonable time limit, subject to genuineness of delay and adjustment rules. Belated availment of Cenvat Credit is permissible for discharging service tax liabilities provided the delay is genuine and the time gap falls within a reasonable limit; omission in one monthly payment does not preclude taking the credit in a subsequent month so long as the conditions of genuineness and reasonable timing are met.