Service tax cenvet credit-6

Sir i have a doubt, if a company ia a service provider and they have a monthly liability to pay service tax. But they had decided not to take cenvat credit (i.e. Service tax input credit). On the other hand they are accumulating cenvat credit and planing to avail this accumulated credit in near future. 

For example 
Company has liability to pay service tax in the month of march'12 is amounting to rs. 100,000 and service tax input credit for that month is rs. 10,000. They paid the full amount without taking input credit.
Similarly, liability to pay service tax in the month of april'12 is amounting to rs. 100,000 and input credit is again 10,000. So in this month they paid only 80,000. (liability 100,000 - accumulated input credit 20,000 = 80,000).
So is this allowed??? 
Can a company accumulate its cenvat credit??? 

Yes, company accumullate cenvat credit and condition is it will be show in servive tax return if fully cenvet credit is not utilisied.

Mr. Akash,

Elelier finance bill 2012, there was a penalty if cenvat credit wrongly avail or utilised.

However from 1.4.2012 word or has been replaced as and.

Hence if you are show the cenvat credit of service tax in the return which will not be utilised then no problem.

Thanks for your reply sir.
As per your answer , the compnay can accumlate its input credit only if they had mentioned the same in there ST3. That means my cenvat credit standing books should match with my ST3. 

But what to do if the company has not mantioned the same in its ST3???

do i have to treat the whole amount as expense or should i ask them to revise there return?

YOU HAVE BOTH OPTION TREAT EXP OR REVISE RETURN.

Thanks Sir. :)

Thanks dear Navin for updating and sharing..........................................

thanks.

Informative post as usual...Keep Sharing...

The cenvat credit scheme is a beneficiant scheme. The objective of the sameis to avoid cascading effect of multi point levy.

Therefore the Pre- registration credits should be available as long as the input/ input services/ capital goods are eligible. [ used in the provision of taxable services] The mere fact that one has not registered is not relevant. There is a case alw in reagrd to refund on the exact matter decided by the Tribunal.

Also cnevat credit rules allow credit availment for past years. Several case laws exist in this reagrd.