Cenvat credit availment

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An assessee has registered with Service tax authorities from 01-04-2007 for providing certain services and started to pay service tax w.ef. 01-04-2007. The assessee availed input service credit on certain bills which were raised & paid after date of registration but actual services were rendered prior to the period of registration of assessee with S. Tax authorities. Therefore, the assessee has received demand notice from the deptt. to deposit cenvat availed on such services. whereas assessee's contention is that as the actual payment of s.tax has been paid after date of registration hence cenvat can be availed even if services were rendered before date of registration.

AI Summary

Dispute Over Cenvat Credit: Assessee Claims Eligibility for Input Credit on Services Rendered Before Registration An assessee registered with the Service Tax authorities on April 1, 2007, and began paying service tax from that date. They availed input service credit on bills raised and paid after registration, although the services were rendered before registration. Consequently, the department issued a demand notice for the cenvat credit availed. The assessee argues that since the service tax was paid post-registration, they are entitled to the credit. A respondent suggests that if the input credit was utilized for services taxed after registration, the assessee is entitled to the credit.