Cenvat credit utilising for payment of service tax

[Sumit Tawari]

One of my client not fieled service tax return for last 1.5 year he has excise credit & he fieled er1 return on monthly basis He also not paid service tax collected. Can he claimed excise credit against service tax paid now Regards, Sumit

AI Summary

Excise Credit Can Offset Service Tax for Manufacturers, Excluding Services from Abroad, per Supreme Court Judgment A client has not filed a service tax return for 1.5 years but has excise credit and has been filing ER1 returns monthly. The query is whether the client can use excise credit against the service tax now due. The response indicates that if the client is a manufacturer under central excise, the excise credit can be used to pay service tax on taxable services provided, including Goods Transport Agency (GTA) services. However, credits cannot be used for services received from outside India. The client is eligible for service tax credits related to manufacturing and service provision, even if delayed, as supported by a Supreme Court judgment.