Commissioner cannot deny Cenvat Credit without the evidence of having nexus between the services and appellant’s manufacturing/business activity

Last updated: 19 April 2021

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The Customs, Excise & Service Tax Appellate Tribunal ruled that a Commissioner cannot deny Cenvat Credit solely on the basis of a lack of nexus between services and a company's manufacturing or business activities. The appellant argued that the services used were directly related to their business operations and fell under the definition of Input Service. The tribunal considered various judgments supporting the appellant's claim for Cenvat Credit.

Court :
Allahabad High Court

Brief :
The Learned Commissioner (Appeals) in the impugned order disallowed the credit in respect of above Services mainly on the ground that the appellant could not establish the nexus between the said services andappellant’s manufacturing/business activity. The Learned Commissioner(Appeals) in respect of some services allowed the Cenvat Credit in principle but due to non-availability of invoice/ledger invoice rejected the Cenvat Credit.

Citation :
Excise Appeal No.10249 of 2020

Daily Limit Reached