Cenvat credit
This query is : Resolved
18 December 2012
Sir
Our company, a builder strted operation during the yr.2010-11 and the service tax registration was taken on June-11 only. We filed the return showing the income of 2010-11 and availing the CENVAT credit also. Now the Service Tax auditors issue us notice demanding tax saying that we are not eligible for cenvat credit related to the period before registration.
The dept. was assessing the collection before registration period and want us to pay tax. Please advice me how to proceed. Shall we approach higher authirities to allow credi.
Expecting your earliest advice.
Our company, a builder strted operation during the yr.2010-11 and the service tax registration was taken on June-11 only. We filed the return showing the income of 2010-11 and availing the CENVAT credit also. Now the Service Tax auditors issue us notice demanding tax saying that we are not eligible for cenvat credit related to the period before registration.
The dept. was assessing the collection before registration period and want us to pay tax. Please advice me how to proceed. Shall we approach higher authirities to allow credi.
Expecting your earliest advice.
18 December 2012
CENVAT Credit & Refund can be availed even without registration-
Commissioner of Service Tax, Chennai v. Varizon Data Services (I) (P.) Ltd.(CESTAT Chennai)
STAY ORDER NO. 369 OF 2012 FINAL ORDER NO. 517 OF 2012 ST/S/419/2011 & ST/654/2011-MAY 9, 2012
Commissioner of Service Tax, Chennai v. Varizon Data Services (I) (P.) Ltd.(CESTAT Chennai)
STAY ORDER NO. 369 OF 2012 FINAL ORDER NO. 517 OF 2012 ST/S/419/2011 & ST/654/2011-MAY 9, 2012
18 December 2012
In the given case-
Insofar as requirement of registration with the department as a condition precedent for claiming Cenvat credit is concerned, learned counsel appearing for both parties were unable to point out any provision in the Cenvat Credit Rules which impose such restriction. In the absence of a statutory provision which prescribed that registration is mandatory and that if such a registration is not made the assessee is not entitled to the benefit of refund, the three authorities committed a serious error in rejecting the claim for refund on the ground which is not existence in law. Therefore, said finding recorded by the Tribunal as well as by the lower authorities cannot be sustained. Accordingly, it is set aside and refund to be granted or cenvat credit to be given.
Insofar as requirement of registration with the department as a condition precedent for claiming Cenvat credit is concerned, learned counsel appearing for both parties were unable to point out any provision in the Cenvat Credit Rules which impose such restriction. In the absence of a statutory provision which prescribed that registration is mandatory and that if such a registration is not made the assessee is not entitled to the benefit of refund, the three authorities committed a serious error in rejecting the claim for refund on the ground which is not existence in law. Therefore, said finding recorded by the Tribunal as well as by the lower authorities cannot be sustained. Accordingly, it is set aside and refund to be granted or cenvat credit to be given.
18 December 2012
Thanks for the quick response.
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18 December 2012
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