NashiCAs Query - Service Tax - Cenvat Credit Prior to Regd.

[mahavir ostwal]

Dear Sir, Mr X has registered himself under Service Tax late (say after one year). He has paid all the dues since beginning after taking CENVAT Credit, whatever paid before the date of registration of Service Tax, and paid the balance amount. However now the Service Tax Authorities has issued him a show cause notice saying that whatever CENVAT paid prior to date of registration could not be considered while paying ST liability. Is there any decision\notification\circular to defend the same.? Pl reply ASAP. Thax

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