#input service credit

CESTAT ruled that reversing CENVAT credit proportionately on inputs used for exempted electricity sales does not amount to non-availment under Rule 6 of the CENVAT Credit Rules. The Tribunal set aside demands totaling ₹7.13 crore, clarifying that separate record-keeping is not mandatory if credit reversal is already effected, offering relief to manufacturers with captive power plants.

CESTAT Hyderabad rules that service tax registration is not a prerequisite for availing Cenvat credit on input services used to export services, even if registration was obtained retroactively. This empowers exporters who delayed registration but used eligible input services during the export period, clarifying a critical compliance gap in service tax refund claims.

CESTAT Chennai ruled that services rendered to SEZ units are exempt from Rule 6(3) reversal under Cenvat Credit Rules, and input credits for rent-a-cab and insurance services are allowable if used for output services. This decision clarifies the entitlement of input service credits for businesses operating in SEZs, impacting tax compliance and credit claims under GST and excise laws.

CESTAT Chennai broadens the scope of 'input services' under Cenvat Credit Rules, 2004, allowing service tax credit on Business Support Services and Management Consultant Services. This ruling aligns with judicial precedents, reinforcing that activities integral to business operations qualify for credit, benefiting manufacturers and service providers alike.