A Service provider can take Cenvat Credit on machinery imported prior to date of its registration

Global Digital Color Lab

v
Commissioner of Central Excise

In the instant case the assessee took Cenvat credit in respect of machine imported prior to its registration under service tax law. The department denied the credit on the ground that no credit can be taken on machine imported prior to registration: On appeal, the Tribunal held in favour of assessee as under: There is nothing in the rules prohibiting a person from maintaining proper account. There is no statutory record presently prescribed like "RG-23" as was earlier in force; Therefore, procedures, as was prevalent in old rules that credit entries in register for taking credit should not belong to a date prior to the date of granting of registration, are not in force now. Accordingly, the credit in respect of machine imported even prior to registration was allowed to assessee