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February 2013

CENVAT credit pertaining to input services for the period prior to having service tax registrationallowed.

By Puloma Dalal, Bakul B. Mody, Chartered Accountants
Reading Time 1 mins
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 Facts:

 The appellant having an office in Software Technology Park was engaged in software export. They obtained registration in 2009 and availed CENVAT credit in respect to period from April 2008 to March 2009. Revenue took a view that they had not obtained registration during the said period and therefore, could not be said to be provider of taxable output services. Hence, CENVAT credit cannot be allowed. The appellant argued that the issue was no more res integra as the same is fully covered by Tribunal’s decision in case of Well Known Polyesters Ltd. reported in 267 ELT 221, wherein it was held that service tax registration is not a pre-requisite to avail CENVAT credit.

Held:

Admitting appellant’s plea and relying on the Tribunal’s decision in case of Well Known Polyesters Ltd. (supra), Tribunal held that the appellant was eligible to claim CENVAT credit of the service tax paid on input services, after getting registration even if the registration is not in place at the relevant time of availing input services.

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