Cenvat credit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 May 2016 Hi,

My client is providing advertising agency service. Client has availed credit of sale of space or time slot after negative list regime came into force i.e after 1st July 2012.But such invoices were pertaining to the services received before negative list. Only payment to vendor was made after 1st July 2012, thus client availed credit after 1st July 2012.
Department is disallowing credit of the same since it was availed in the period where service itself was not taxable. We tried to explain them that inovices were dated before 1st July 2012. Thus, it should be allowed.

We require your help for finding case laws citing above facts

In case you require any further facts, you can reach me via email.
parekhaman97@gmail.com

Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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18 May 2016 The important fact to be noted here is since when was your client a registered service provider. Advertising Agency Service was made taxable by Finance Act 1996 and by Notification No: 6/96 - ST dated 31.10.1996 the service became a taxable service. Therefore the contention that the service was not taxable prior to 1st July 2012 is patently wrong and absurd.

If your client was a registered service provider of Advertising Agency Services prior to 1st July 2012, he is jolly well entitled to avail of input credit for rendering that service, irrespective of whether he took the credit in earlier years or not. Throw the Notification on the face of the Inspector r Superintendent with a copy to the Divisional Assistant / Deputy Commissioner and watch the fun.

Has the Range Superintendent issued a written order / letter denying the input credit? If not ask him to give in writing that you are not entitled to avail of the input service credit on advertising service inputs prior to 1st July 2012.

Interesting case. In case you require any further clarification, you can mail me at my registered e-mail in my expert profile.