TaxTMI 
TaxTMI 
(1) A SERVICE PROVIDER availes 50% credit last FY, reaining 50% credit this FY on a C.G.. (2) He utilised full credit (by paying ST) in this FY (3) He closes his bussiness, surrenders RC certificate (4) His C.G. is now being utilised by another service provider Q:- What will be the revenue implication, whether credit already aviled is required to be reversed?
Reversal of credit
12 Nov 2009 
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Reversal of cenvat credit required when capital goods are sold or not transferable following business closure.
Reversal of Cenvat credit is required where a provider who availed credit, utilised it, closed the business and surrendered registration, and the capital goods are not transferable under the applicable transfer provisions or were sold; in such cases mandatory reversal of Cenvat attributable to those capital goods is required in accordance with the statutory transfer rules governing Cenvat credit on capital goods. (AI Summary)
Reversal of Cenvat credit is required where a provider who availed credit, utilised it, closed the business and surrendered registration, and the capital goods are not transferable under the applicable transfer provisions or were sold; in such cases mandatory reversal of Cenvat attributable to those capital goods is required in accordance with the statutory transfer rules governing Cenvat credit on capital goods. (AI Summary)