|Custom, Excise & Service Tax Tribunal
Rule 6(3A) CENVAT Credit Rules | Reimbursement of Material Costs in BOOT Contracts Not 'Trading' or 'Exempt Service' : CESTAT Chennai
CESTAT Chennai rules that reimbursement of material costs in a BOOT works contract does not constitute 'trading' or 'exempt service', invalidating mandatory CENVAT credit reversal under Rule 6(3A). The decision clarifies that input service credits can be availed without separate accounts, impacting infrastructure and service contractors under tax law.