(7)[ The CENVAT credit in respect of input service shall be allowed, on or after the day on which the invoice, bill or, as the case may be, challan referred to in rule 9 is received;[Provided that in respect of input service where whole or part of the service tax is liable to be paid by the recipient of service, credit of service tax payable by the service recipient shall be allowed after such service tax is paid:Provided further that in case the payment of the value of input service and the service tax paid or payable as indicated in the invoice, bill or, as the case may be, challan referred to in rule 9 is not made within three months of the date of the invoice, bill or, as the case may be, challan, the manufacturer or the service provider who has taken credit on such input service, shall pay an amount equal to the CENVAT credit availed on such input service, except an amount equal to the CENVAT credit of the tax that is paid by the manufacturer or the service provider as recipient of service, and in case the said payment is made, the manufacturer or output service provider, as the case may be, shall be entitled to take the credit of the amount equivalent to the CENVAT credit paid earlier subject to the other provisions of these rules:] [Substituted by Notification No. G.S.R. 286 (E) dated 31.3.2011 (w.e.f. 10.9.2004)][Provided also that in respect of services provided or agreed to be provided by a person located in nontaxable territory to a person located in non-taxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India where service tax is paid by the manufacturer or the provider of output service being importer of goods as the person liable for paying service tax for the said taxable services, credit of service tax paid by the person liable for paying service tax shall be allowed after such service tax is paid:] [Inserted by Notification No. G.S.R. 372(E), dated 13.4.2017 (w.e.f. 10.9.2004).]Provided also that CENVAT credit in respect of an invoice, bill or, as the case may be, challan referred to in rule 9, issued before the Ist day of April,2011 shall be allowed, on or after the day on which payment is made of the value of input service and the service tax paid or payable as indicated in invoice, bill or, as the case may be, challan referred to in rule 9.[Provided also that unavailed Cenvat Credit in respect of services provided by the Government, local authority or any other person by way of assignment of the right to use any natural resource on the day immediately preceding the appointed day may be availed of in full on that very day.] [Inserted by Notification No. 577(E), dated 12.6.2017. (w.e.f. 10.09.2004)]Explanation I. - The amount mentioned in this [rule] [Substituted by Notification No. G.S.R. 151(E) dated 1.3.2015 (w.e.f. 10.9.2004)], unless specified otherwise, shall be paid by the manufacturer of goods or the provider of output service by debiting the CENVAT credit or otherwise on or before the 5th day of the following month except for the month of March, when such payment shall be made on or before the 31st day of the month of March.Explanation II. - If the manufacturer of goods or the provider of output service fails to pay the amount payable under this [rule] [Substituted by Notification No. G.S.R. 151(E) dated 1.3.2015 (w.e.f. 10.9.2004)], it shall be recovered, in the manner as provided in rule 14, for recovery of CENVAT credit wrongly taken.Explanation III. - In case of a manufacturer who avails the exemption under a notification based on the value of clearances in a financial year and a service provider who is an individual or proprietary firm or partnership firm, the expressions, "following month" and "month of March;' occurring in sub-rule (7) shall be read respectively as "following quarter" and "quarter ending with the month of March".] [Substituted by Notification No. G.S.R. 151(E) dated 1.3.2015 (w.e.f. 10.9.2004)][Explanation IV. - "unavailed CENVAT credit" means the amount that remains after subtracting the amount of CENVAT credit already availed in respect of any service from the aggregate amount of CENVAT credit to which the recipient of such service was entitled to in respect of such service.Explanation V. - "appointed day" means the date on which the provisions of the Central Goods and Services Tax Act, 2017 (12 of 2017) shall come into force.] [Inserted by Notification No. G.S.R. 577(E), dated 12.6.2017. (w.e.f. 10.09.2004)]
