Whether Cenvat credit available on input services for the period prior to the registration?
Dear Professional Colleague,
We are sharing with you a recent judgment of the Honorable CUSTOMS EXCISE & SERVICE TAX APPELLATE TRIBUNAL, West Zonal Bench, Ahmedabad:-
Appeal No. : ST/161 of 2012 [Application No. ST/S/367 of 2012]
Order No. : WZB/AHD/2012
Appellant (s) : M/s. C. Metric Solution Private Limited
Respondent (s) : Commissioner of Central Excise Ahmadabad
Issue:-
Whether Cenvat credit available on input services for the period prior to the registration?
Facts of the Case:-
The appellant has availed cenvat credit of the service tax paid on input services during the period April 2008 to March 2009, after getting the service tax registration on 23 March 2009. Revenue authorities are of the view that appellant is not eligible for cenvat credit on the input services for the period prior to the registration granted to the appellant.
Held:-
Eligible for cenvat credit on the input services for the period prior to the registration.
The appellant had relied upon the decision of the Tribunal in the case of J.R. Herbal Care India Limited v. CCE, Noida – 2010 (253) E.L.T. 321 (Tri- Del). In this case the appellant had received the capital goods while availing SSI exemption without taking registration. Cenvat credit was taken on the capital goods for the years 2003-04 and 2004-05 but taken in the year 2005-06. This was allowed by the Tribunal. The Tribunal took a view that there is no provision in the rules that credit was not available to unregistered manufacturers. Manufacturers exempted from the registration do not cease to be a manufacturer of excisable goods. This case squarely covers the issue in this case also. Therefore, in respect of the goods manufactured during the period when the appellant was not registered, credit can be taken subsequently also. This view is further supported by the consistent stand taken by various judicial forums in the case of clandestine removals, even if the duty is paid subsequently, cenvat credit on inputs used will be available to the assessee/manufacturer subject to the conditions that proper documents showing the payment of duty are available. In the case of SSI Units also, wherever SSI benefits have been denied, cenvat credit has been allowed. Therefore, in this case also the action of the appellants in taking credit on 9-10-2009 has to be upheld.
The Appellant in his submission relied upon the following decisions:-
(a) Well known Polyesters Limited2011 (267) ELT 221 (Tri. Ahmd.)
(b) J.R. Herbal Care India Limited 2010 (253) ELT 321 (Tri. Del.)