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?

[Surender Gupta]

Rule 3 of the CCR, 2004 read with the definition under rule 2 are sufficient to claim credit of duty of excise paid on inputs or service tax paid on input services as long as such input or input services are used for or in relation to manufacture of excisable goods or taxable services. Therefore, if you were not claiming exemption prior to registration and receiving inputs or input services, you can claim benefit of credit belongs to the period prior to registration. On the other hand, if you were availing SSI exemption, you can claim credit of inputs in stock as on the date when you start paying duty of excise.

AI Summary

Input tax credit for pre registration inputs permitted when used in manufacture; SSI exempt units may claim stock credit on duty commencement. Credit of excise duty on inputs and service tax on input services is claimable for inputs or services used in manufacture of excisable goods or taxable services; pre registration inputs and services are eligible for credit if no exemption was availed, while units that availed SSI exemption may claim credit only for inputs in stock when they commence paying duty.