CESTAT Allows Input Service Tax Refund Claims, Validates Computation Method Using Gross CENVAT Credit Over Closing Balance.

CESTAT overturned the rejection of input service tax refund claims. The Tribunal held that various input services had demonstrable nexus with output services, making them eligible for refund except for 4 services. The computation method using Gross Eligible CENVAT Credit instead of Closing CENVAT Balance was affirmed. Issues regarding reverse charge mechanism payments and foreign currency invoices were resolved. While procedural lapses involving unregistered premises (Rs. 2,03,867) remained contested, the Tribunal directed verification of central registration status. Matter remanded to original authority for fresh adjudication in accordance with findings on service nexus and eligibility criteria. .....

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