Disallowance of CENVAT Credit if show caused
V V SATYANARAYANA
(Querist) 20 November 2008
This query is : Resolved
Sirs,
I am a service provider. I have taken service tax registration belatedly and claimed demand confirmed.
Now if I deposit the service tax with interest for the past period and claim from the service receiver, does the Department disallow the CENVAT credit to the Service Receiver because I am (service provider) is show caused and adjudicated.
This part is not clear in the CENVAT Credit rules. Is there any departmental clarification or case laws available in this context. What is the legal position plese.
Kindly provide your valued opinion.
Rajesh Kumar
(Expert) 22 November 2008
Service receiver can take credit. even if the department object, the case of service received will stand.