CESTAT allowed the appeal, finding that: (1) proportionate ...

CESTAT Upholds Credit Reversal, Validates CA Certificates, and Rejects Department's Procedural Challenges in Tax Credit Dispute

April 18, 2025

Case Laws     Service Tax     AT

CESTAT allowed the appeal, finding that: (1) proportionate CENVAT credit reversal sufficiently complied with Rule 6(3) of CENVAT Credit Rules, 2004; (2) CA certificates validly established no credit was availed on common input services from October 2012 to March 2015; (3) original invoice submission to Range Office was acceptable; and (4) extended limitation period was improperly invoked given comprehensive prior audits and regular return filings. The tribunal set aside the demand for 5%/6% of exempted services value, effectively ruling in favor of the appellant by rejecting the department's claims and procedural challenges.

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