Case Law Analysis
|Custom, Excise & Service Tax Tribunal
CENVAT Credit Rule 2(l) | Repair & Maintenance of Plant & Machinery Qualifies as Input Service : CESTAT
CESTAT upholds that expenditure on repair and maintenance of plant and machinery qualifies as an input service under Rule 2(l) of the CENVAT Credit Rules, 2004, entitling manufacturers to claim credit even when services are not directly linked to production. This clarifies a critical compliance gray area for capital-intensive industries and reverses arbitrary disallowances totaling over Rs. 20 lakh.