ISD, Service Tax

[jitendra Gupta]

whether credit of input material or input services prior to registration of central excise or service tax can be availed by the assessee? If so under which Rule or Act?

Posts / Replies

[Surender Gupta]

Rule 3 of the CCR, 2004 read with the definition under rule 2 are sufficient to claim credit of duty of excise paid on inputs or service tax paid on input services as long as such input or input services are used for or in relation to manufacture of excisable goods or taxable services. Therefore, if you were not claiming exemption prior to registration and receiving inputs or input services, you can claim benefit of credit belongs to the period prior to registration. On the other hand, if you were availing SSI exemption, you can claim credit of inputs in stock as on the date when you start paying duty of excise.