Inpurt credit taken on sercie tax charged by commission agent-reg, Central Excise

[Kantilal kachhadiya]

We have taken input credit on service tax charged by commission agent but not utilised till, final verdict of Honorable Supreme court in the case of Ahmedabad-II Vs. M/s Cadila Healthcare Ltd. But ,recently ,in the cenvat credit Rules-2004, Notification No.21/2014-Central Excise(N T) provided that the manufacturer or the provider of output service shall not taken CENVAT credit after six months of the date of issue of any of the documents specified in sub-rule (1) of rule 9.What should I do .whether we utilised the input credit on serce tax charged by commission agent or wait till final decision of supreme court in the case of M/s Cadila Healthcare Pvt Ltd ?

Posts / Replies

[Pradeep Khatri]

Dear Kantilal,

Its all depends on your risk appetite. But in our opinion you must have wait and watch policy in this regard. If you utilize it and in the event of any adverse adjudication, then, you would have to pay the statutory interest along with reversal of CENVAT credit as law say "availed and Utilized".

Regards,

Sameer Malhotra - Consultant

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

[Naveed S]

Sir,

Prima facie based on the relevant facts and evidence, such credit not is admissible, hence better to avoid availment of such input credit.

[MUKUND THAKKAR]

Sir,

please follow suggestion is given by Mr. Naveed. you are alone so many people waiting decision. "aache din aayenge"