Credit of Service tax

[sunil jain]

In view of notification no.10/2008 dt 1-3-08,restiction of 20% on use of CENVAT credit goes away (wef. 01-04-08), now either pay 8% 0f exempted service or revese the credit attributable to exempted service. In this case, are we still entitled to claim full credit of 16 services given in sub-rule(5) of rule 6 of e Cenvat Credit Rule.

I am of the view so long as the rule is in the statute book and there is no express restrictions in the provisions, one can continue to avail full credit of 16 specified services as per rule 6(5) even after 1.4.2008.

AI Summary

Cenvat credit entitlement for specified services continues despite removal of prior restriction, if statutory provisions contain no express bar.
The notification removing the prior percentage restriction altered compliance options-either pay the statutory amount for exempted services or reverse credit attributable to exempted services-but does not, absent an express statutory prohibition, affect the existing entitlement to claim full Cenvat credit for the specified list of support services while the rule granting that list remains in force.