Case Law Analysis
|Custom, Excise & Service Tax Tribunal
Rule 6(5) Cenvat Credit Rules | Abatement under Notification 1/2006-ST Does Not Bar Credit on Common Inputs: CESTAT Chennai
CESTAT Chennai holds that businesses claiming abatement on services like outdoor catering under Notification 1/2006-ST can still claim full Cenvat credit on common inputs, as long as those inputs are not used exclusively for exempt services. This resolves a long-standing ambiguity for hospitality and service providers, affirming that abatement and credit are not mutually exclusive under the Cenvat framework.