https://www.taxtmi.com/forum/issue?id=3715 Service tax on royalty and commission on guarantee is payable under the reverse charge mechanism and must be discharged in cash; CENVAT credit cannot be used to pay that liability. Service tax paid under reverse charge is eligible for CENVAT credit subject to the Cenvat Credit Rules, 2004. If CENVAT was wrongly used earlier, the department may demand tax with interest in cash, and the taxpayer may pay in cash, seek re-credit of the earlier debit, and then claim credit if the cash-paid tax qualifies as an input service under the CCR, 2004. en-us Fri, 06 Jan 2012 12:19:05 +0530 Thu, 23 Jan 2025 15:58:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=3715 Service tax on royalty and commission on guarantee is payable under the reverse charge mechanism and must be discharged in cash; CENVAT credit cannot be used to pay that liability. Service tax paid under reverse charge is eligible for CENVAT credit subject to the Cenvat Credit Rules, 2004. If CENVAT was wrongly used earlier, the department may demand tax with interest in cash, and the taxpayer may pay in cash, seek re-credit of the earlier debit, and then claim credit if the cash-paid tax qualifies as an input service under the CCR, 2004. Discussion-Forum Central Excise Fri, 06 Jan 2012 12:19:05 +0530 https://www.taxtmi.com/forum/issue?id=3715