4. Utilization of service tax credit.

(1) The service tax credit availed on input service may be utilized for payment of service tax on the output service.

Provided that while paying service tax on the output service, the service tax credit shall be utilized only to the extent such credit is available on the last day of a month, for payment of service tax relating to the month or in case where the assessee is an individual or proprietary firm or partnership firm, to the extent such credit is available on the last day of the quarter for payment of service tax relating to the quarter.

(2) Refund of service tax credit availed on input service shall not be allowed under any circumstance.