Availment of Cenvat Credit

This query is : Resolved

karthik (Querist)
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16 March 2009 I Would lIke to have your clarification on the below issue.

We are in teh process of registering our firm with the Service tax department for rendering service under category " Bussiness Support Services ".

May be i would have my registration done by 20.03.2009.

Our First Invocie will be raised on 25.03.2009 towards the service being provided by us.

My Point is that can we avail the cenvat credit of the service tax paid on some of the Input services.......Input services Invocie dated before the date of registration......consider the date of the invoice of the input service will be around 15.02.2009. ( Before the date of registration .

Kindly clarify.

Regards
Karthik

Dayal

Dayal (Expert)
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21 March 2009 First check whether you fall under the threshold limit of exemption of 10 lacs since it is year end.

Second if you do not fall under the service tax provisions of threshold limits then observe the following

if the service has been rendered by the provider and consumed by you prior to the date of registration - No cenvat credit is eligible.

Going by certian judgement you will stand eligible, but first inform the department that you are going to take the credit of such an invoice, so that the suppression clause will not be applicable and you can escape on the grounds of interpretation of the act.

There are several supremen court judgements, but they not be evenly applicable to this situtation.

you may evaluate your stand in light of the above and seek inputs from the department by a simple letter approach