Utilization of credit on input services for payment of excise duty

[chaganti srinivas]

Dear Sirs, Dept. denied credit availed on input services for the reason saying that this credit was utilised for payment of our output Service Tax. Please let me know is there any circular / notification restricting utilisation of credit only to payment of central excise duties and pay the service tax payment thru cash?, Please refer case laws if any. Thanks & regards srinivas

AI Summary

Service Tax Credit Can Be Used to Pay Excise Duty and Vice-Versa, With Limited Restrictions on Specific Credits. A user inquired about the denial of credit availed on input services, questioning if there is any restriction on using this credit for paying service tax instead of central excise duties. The respondent clarified that, except for a few restrictions on specific credits like NCCD, ACD, or cesses, there are generally no limitations on the inter-adjustment of excise and service tax credits. Based on the available information, the respondent opined that Service Tax Credit can be utilized for the payment of Excise Duty and vice-versa.