Case Law Analysis
|Custom, Excise & Service Tax Tribunal
CENVAT Credit Reversal Not Triggered by Mutual Fund Redemption as It Is Not a 'Service' Under Finance Act, 1994 : CESTAT
CESTAT has ruled that redemption of mutual fund units does not constitute a 'service' under the Finance Act, 1994, and therefore cannot be classified as an exempted service. This means companies investing in mutual funds need not reverse CENVAT credit on common input services, clarifying a major ambiguity for B2B platforms and corporate investors alike.