https://www.taxtmi.com/forum/issue?id=110710 Whether input service tax paid during an excise area-based exemption can be accumulated and utilised after exemption cessation; Cenvat requires paid tax and qualifying input service and permits utilisation only for taxable outputs. Rules emphasise credit tied to tangible inputs lying in stock at cessation; services consumed during exemption are not treated as stockable credits and therefore cannot be used later for duties on products becoming non-exempt. The exemption breaks the credit chain, and using accumulated service tax credits later is generally not permissible, though litigation has been suggested as a risky alternative. en-us Sat, 30 Jul 2016 16:47:05 +0530 Thu, 23 Jan 2025 15:56:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=110710 Whether input service tax paid during an excise area-based exemption can be accumulated and utilised after exemption cessation; Cenvat requires paid tax and qualifying input service and permits utilisation only for taxable outputs. Rules emphasise credit tied to tangible inputs lying in stock at cessation; services consumed during exemption are not treated as stockable credits and therefore cannot be used later for duties on products becoming non-exempt. The exemption breaks the credit chain, and using accumulated service tax credits later is generally not permissible, though litigation has been suggested as a risky alternative. Discussion-Forum Service Tax Sat, 30 Jul 2016 16:47:05 +0530 https://www.taxtmi.com/forum/issue?id=110710