Cenvat adjustment for payment of old dues

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 September 2013 We have a cenvat credit available as on march 13 of ten lacs...the credit is for services from july 2012 i e. From negative list approach...we have initialy not claimed the same but as on mar13 we have balace of ten lacs...in service tax audit tax is payable on some items from 2008 as pointed by serive tax officr....can we utilise this cenvat credit for payment of old dues?? Or we have to pay in cash...

CA Kintal Shah

CA Kintal Shah (Expert)
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14 September 2013 You can only utilise the credit which were available when the payment was "DUE" to be paid.

If you were liable to pay any ST in 2008, which you are paying now, then you need to check credit avvailable as on 2008.
Credit available as on Mar 2013 will be availbale for any tax due from April 2013 onwards.