Adjustment of input credit of service tax

[Guest]

If service tax input credit not shown in Service tax half yearly returns by registered assessee and not filed amended returns with in stipulated period whether service tax credit will be disallowed, because the assessee wasn not had the choice of adjustment of Input credit against Out put services and he accumulated input credit for long period. Now he wish to adjust against the similar type of services, whether any Rule, Case Law support this.

[Guest]

Strictly as per Service tax provisions, there is no time limit to either take the eligible CENVAT credit, though Tribunal decisions rendered in the context of earlier CENVAT on excise component fixed six months period for availing the CREDIT. Once the eligible Credit is taken as per the provisions, there is no time limit for its adjustment. Based on this position, you may take the eligible CENVAT credit amount now.

[vineet bansal]

I am fully agreed with the opinion of Mr. V Ramanujam

AI Summary

CENVAT credit availability: eligible service tax input credit may be taken and adjusted without a statutory time limit. The service tax/CENVAT framework does not impose a general time limit for taking and adjusting otherwise eligible input credit; earlier tribunal rulings imposing a six month limitation pertained to excise CENVAT and are context-specific. Therefore an assessee who failed to show credit in earlier returns may now take and adjust eligible CENVAT credit provided the statutory entitlement and procedural conditions are met.