Utilization of credit on input services for payment of excise duty, Service Tax

[chaganti srinivas]

Dear Sirs, Dept. denied credit availed on input services for the reason saying that this credit was utilised for payment of our output Service Tax. Please let me know is there any circular / notification restricting utilisation of credit only to payment of central excise duties and pay the service tax payment thru cash?, Please refer case laws if any. Thanks & regards srinivas

Posts / Replies

[Brijesh Verma]

Cenvat Credit is simply your account in government books. Except a few restrictions such as utilization of credit of NCCD, ACD or cesses, there are no restriction in inter-adjustments of excise and service tax. On the basis of the limited information which I could gather from your query, in my opinion, you can very well utilize Service Tax Credit for payment of Excise Duty as well as vice-versa.