ISD

[jitendra Gupta]

whether credit of input material or input services prior to registration of central excise or service tax can be availed by the assessee? If so under which Rule or Act?

AI Summary

Can Assessees Claim Input Credit Before Registration? Rule 3 of Cenvat Credit Rules, 2004, Provides Clarity. A user inquired whether an assessee can claim credit for input materials or services before registering for central excise or service tax. The response clarified that under Rule 3 of the Cenvat Credit Rules, 2004, and its definitions, credit can be claimed for excise duty on inputs or service tax on input services if they are used for manufacturing excisable goods or taxable services. If no exemption was claimed before registration, credit for the period prior can be availed. However, if the Small Scale Industry (SSI) exemption was utilized, credit can only be claimed for inputs in stock when duty payment begins.