CENVAT Credit on past period service tax payment

[Pradeep Jain]

Dear Sir,

Our Company had availed services  from  year 2005-06 to Oct'2007 of    Management , Maintenance  and Repairs , for this purpose Service  Providers also engaged Manpower and no service tax was charged by him . During our Head Quarter Audit this point was raised , that Service Provider is  liable to pay service tax thereon.

On the basis of the above information Service Tax Officers of Preventive Branch searched the premises of  the service provider and after that issued a show-cause notice to the service provider for payment of  said service tax of Rs. 4,47,287/- and imposed penalty under section 76,77 and 78 of the  Finance Act. Out of the said demand Rs. 1,49,568/- accepted and paid by the service provider. However , the total demand confirmed along with penalty ,as above.

The Service Provider has filed an appeal before the Commissioner Appeal, Indore. The Hon'ble Commissioner has appropriated the amount of Rs. 1,49,568/- as acepted by the  Service Provider and set aside the rest demand along with  penalty e, on the  ground that that the said demand is not covered under the " Management , Maintenance and Repair Service, and reject the charge to intent to evade of tax payment by service provider.

-Service Provider  has been instisting for payment of service tax of Rs. 1,49,568, on the basis of the above order and the  copy of  Service Tax paymnet Challans;

Now Query is that:-

1- Are we entitled to avail CENVAT Credit e , as above,on the basis of the said service tax challan;

2- Is there any need to get Supplimentry Invoice;

3- Is ther any chances to issue SCN by our Range office  after availment of CENVAT Credit of Service Tax.

Regards

Pradeep Jain

AI Summary

CENVAT credit availability denied where service tax paid after show cause notice; availing credit risks departmental SCN.
The central issue is whether CENVAT credit can be claimed for service tax paid by a service provider after issuance of a show cause notice and during litigation. The recorded advice states such credit is not available where tax was deposited post SCN; the recipient should pay the provider but may refuse penalties and interest; a supplementary invoice may be issued by the provider; availing credit in these circumstances risks a departmental SCN and is therefore discouraged.