#nexus requirement

CESTAT Chennai rules that CENVAT credit remains allowable if input services have a direct nexus to output services, even after the 2011 amendment removing 'activities relating to business' from the definition. The ruling clarifies eligibility for manufacturers and service providers under Rule 3(l) of the CENVAT Credit Rules, 2004.

Bombay High Court rules that investigative agencies cannot freeze bank accounts under Section 102 CrPC without establishing a direct link to the alleged offence. The court struck down a Rs. 6.55 crore bank guarantee condition for de-freezing, emphasizing that criminal proceedings cannot substitute civil recovery and must respect the presumption of innocence.

CESTAT clarifies that CENVAT credit on input services is admissible only if a direct nexus with output services is established, remanding multiple claims for fresh adjudication.