Supplementry invoice in service tax after two year

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parteekjain (Querist)
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10 June 2013 If a contractor forgets to charge the service tax on the free material supplied by the service recipient for construction of commercial building. Now after two years from the date of issuing the original invoice can he charge the service tax by issuing the supplementary invoices of service tax to the recipient company?
Further if such recipient company can avail CENVAT credit now in case it makes such payment?

Please refer any section, circular , notification or case law for reference if possible.

Arvind Tiwari

Arvind Tiwari (Expert)
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11 June 2013
Dear Parteek Jain,

If while issuing Invoice to you, your contractor has not charged Service tax on the Free issue material (FIM) & now he want to collect the service tax on the FIM from you
I feel you are entitle for the CENVAT credit what you pay on FIM to your Contractor. The only condition is that you have take declaration from contractor that liability paid by contractor to ST Department is not on account of Fraud/Suppression of fact etc

Ref :- Rule 9 of CENVAT credit rules 2004 & Section 73(1) of Finance Act, 1994.
Rule 2A of ST Valuation Rules 2006.

Arvind
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