https://www.taxtmi.com/caselaws?id=1450 Accumulated input service tax credit could be carried forward and utilised later, provided the total utilisation did not exceed 35% of the service tax payable on output services where separate accounts were not maintained. The restriction under Rule 3(5) operated only on the extent of utilisation, not on the timing of use, and the rule did not require earlier credit to lapse or be exhausted within the same month or quarter. On the stated facts, the credit utilisation remained within the permissible ceiling, so the basis for penalty and interest on alleged excess utilisation did not survive. en-us Tue, 26 Dec 2006 00:00:00 +0530 Mon, 14 Apr 2008 18:30:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=1450 Accumulated input service tax credit could be carried forward and utilised later, provided the total utilisation did not exceed 35% of the service tax payable on output services where separate accounts were not maintained. The restriction under Rule 3(5) operated only on the extent of utilisation, not on the timing of use, and the rule did not require earlier credit to lapse or be exhausted within the same month or quarter. On the stated facts, the credit utilisation remained within the permissible ceiling, so the basis for penalty and interest on alleged excess utilisation did not survive. Case-Laws Service Tax Tue, 26 Dec 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=1450