Assessee can take Cenvat credit of service tax paid on input services availed by it prior to date of its registration

In a recent case of C. Metric Solution (P) Ltd., Ahmedabad Bench of Cestat held that assessee can take Cenvat credit of service tax paid on input services availed by it prior to date of its registration.

Similarly, the Delhi Tribunal in the case of J.R. Herbal Care India limited, held that ‘ there is no provision in the rules that cenvat credit was not available to the unregistered manufacturers’

Also, in case of SSI units also, wherever SSI benefits have been denied, Cenvat Credit has been allowed.

Statutory requirement for availing Cenvat Credit of service tax on input services.

•  Allowed to the manufacturer or producer of final products or provider of output service [Rule 3 of Cenvat Credit Rules (CCR), 2004]
• Cenvat credit in respect of input service shall be allowed, on or after the day on which the invoice, bill as per Rule 9 is received by such person. [Rule 4(7) of CCR, 2004]

Primarily, to avail Cenvat credit, the assessee must fulfill above two conditions i.e. Person shall be manufacturer or producer of final products or provider of output service and have received a invoice issued as per Rule 9.

Also, as per Rule 9 of CCR, it is not mandatory to mention Excise Registration number or Service Tax Registration number of the assessee receiving services.

CA Rahul Jain
rahuljain@rpmd.in