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

[Madhukar N Hiregange]

The client is amnufacturer under central excise it appears. If so the same can be used for paymentof service tax on his taxable services provided and GTA. For the services from outside India there is abar on using credits. Your client would also be eligible for the servic etax credits for use in relation to manufacture and clearacne of goods as well as those used for provding the servcie. Though delayed the tax credits would be available as per the SC judgement in Formica India Division.

AI Summary

Cenvat credit use for service tax: allowed for manufacturer's taxable services and GTA; foreign services barred.
A manufacturer may use central excise/Cenvat credit to pay service tax on taxable services he provides, including GTA services, but credits relating to services from outside India are barred; credits used for manufacture and clearance of goods remain available for such set off, and delayed/utilisation of credits may be possible in light of judicial precedents permitting retrospective claims.