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Utilization of cenvat credit of old pending bills.

Service Tax - Started By: - RAVI ANJARA - Dated:- 12-3-2016 Last Replied Date:- 22-3-2016 - Sir, We(a PSU) have around ₹ 98 lacs of bills issued by a PSU for under ground cable laying work in 2001 to 2003. The matter was with arbitrators for around 12 years and now the arbitrator has ordered to pay the bill now. The invoices were issued to us in 2001 to 2003 but it was seized due to legal disput. Service tax has been claimed in invoices at 8%. Now the quary is : 1. Can we take the cenvat c .....

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od there was no time limit for availing Cenvat Credit. Case laws can be traced out if there is any problem., - Reply By Akash Deep - The Reply = Dear Ravi,very interesting case. would love to work on it if got paid. i guess your apprehension is about one year limit. i would suggest you to read case of Osram Surya by Hon'ble Supreme Court on the issue regarding availment of CENVAT Credit. do not connsider SBC or RCM as transaction happen in 2001-2003 and charging section on RCM came only on 1 .....

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vice Tax. For the first time, Service Tax Credit Rules, 2002 were inserted vide Notification No. 14/2002-ST dated 1.8.2002 (effective from 16.8.2002) and Cenvat Credit was allowed w.e.f. 16.8.2002 subject to three major conditions:- 1.Input Service and Output Service must fall in the same category of taxable service. 2.In any other case input service credit was allowed on or after 14.5.2003 (after issuance of bill) 3. After Full payment of value and Service Tax. These Service Credit Rules, 2002 .....

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up to 31.3.15. Thereafter, w.e.f. 1.4.15 condition of only payment of Service Tax was made mandatory before taking credit. A period of three months was provided for realisation of full value of invoice. From 16.8.2002 to 10.7.2014, no time limit was in force for availment of Cenvat Credit.There is one judgement of High Court on such issue which took into consideration the period under which invoices remained in the custody of Railways and in your case invoices remained in the custody of the cour .....

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e remained in force till 13.5.2003. Only period left is 14.5.2003 to 31.12.2003 for which you can fight if the amount of cenvat credit is substantial and get the natural justice.The above mentioned judgement of High Court can be helpful to you if you opt for litigation. Without litigation you cannot get this credit. This is my analysis. - Reply By surya narayana - The Reply = Dear FriendI fully agree with the views expressed by Mr. Kasturi Sethi JiIt is implied that Cenvat credit cannot be avail .....

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rbitrator for quite a long time for the sake of some decision/clarification etc., and now you need consider the to pay the Differential ST and SBC in terms of point of taxation.Best RegardsSuryanarayana - Reply By KASTURI SETHI - The Reply = Sh.Surya Narayana Ji, Thanks a lot, Sir. Supporting the views is always a source of inspiration. It is natural that views supported are legally correct and it has passed through the test. - Reply By CS SANJAY MALHOTRA - The Reply = Dear Mr. Ravi & Friend .....

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