Case Law Analysis
|Custom, Excise & Service Tax Tribunal
CENVAT Credit Reversal Mandatory for Common Inputs Used in Investment Activity | Investment Not a 'Service' Under Rule 14, CCR: CESTAT
CESTAT rules that when common input services are used for both taxable services and non-service investment activities like securities trading, proportionate reversal of CENVAT credit is mandatory. This clarifies a critical boundary in indirect tax compliance for financial institutions and corporate entities with dual-use expenditures, preventing unjustified credit claims on non-taxable activities.