2015 (12) TMI 1910 - AT - Service Tax

CENVAT credit of service tax paid by the Banking and other Financial Service provider - input service - HELD THAT - The issue is no more res integra. This very of the Tribunal has held that Banking and other Financial services will be covered under the definition of Input Service and CENVAT credit of service tax paid on the same would be eligible as credit for the manufacture of goods especially when they are 100% EOU - Tribunal in the case of Vishal Malleables Ltd. 2012 (11) TMI 871 - CESTAT AHMEDABAD has held that If the goods are exported refund of Service Tax on the services which are used in relation to the goods exported needs to be refunded. There are no reason to interfere with the impugned order of Commissioner (Appeals) and the same is upheld. Revenues appeal is dismissed.

Summary

The Appellate Tribunal in CESTAT AHMEDABAD heard an appeal filed by the Revenue against the Order-in-Appeal allowing CENVAT credit for service tax paid by Banking and Financial Service providers. The Revenue argued that such services do not qualify as input services for manufacturing goods. However, the Tribunal referenced previous decisions and held that Banking and Financial services fall within the definition of input services, especially for 100% Export Oriented Units (EOUs). The Tribunal upheld the Commissioner's decision, dismissing the Revenue's appeal.