Cenvat credit ineligible for beyond year, Service Tax

[Kalmesh Siddatagimath]

Sir,

The appellant is Head Post Office, Central Govt Department were holder of Service Tax Registration on 3rd July, 2015,for rendering Courier Agency services, Insurance Auxiliary Life Insurance Services. The appellant records were audited by the Officer of the Central Excise Audit Commissionerate

During the course of audit of ST-3 Return and verification of cenvat documents, it is noticed that input service tax credit amount pertaining to the period beyond year i.e from July -2012 to June 2014 has been availed and utilised

Audit Commissioner, therefore ineligible input service credit amount needs to be recovered from the Postal depart along with interest and penalty

Please you advise me cenvat credit eligible in the above said case. If any recent judgments or order regarding Cenvat credit suitable to my case

Thanking you

Posts / Replies

[KASTURI SETHI]

Dear sir,

During the period mentioned by you, Courier Agency Service has never been out of the definition of 'input service' as per Rule 2(l) of Cenvat Credit Rules, 2004. Insurance services were in exclusion clause. What is crucial is that input service must be used by a provider of output service for providing taxable output service. It depends upon case to case as facts and circumstances are always different in each case

2016 (44) S.T.R. 101 (Tri. - Chan.)  = 2016 (2) TMI 977 - CESTAT CHANDIGARH COMMR. OF C. EX., DELHI-III Versus CAPSUGEL HEALTHCARE LTD.

[Ganeshan Kalyani]

Input output nexus is one of the requirement whcih need to be proved in service tax.

[DR.MARIAPPAN GOVINDARAJAN]

The Department view is correct. If the input service credit is availed beyond the limitation period the same should be reversed and the same should be paid along with interest. there is no escape in this matter. The Department is to monitor in regard to the availment of credit in time.