CENVAT credit on input services remains admissible where tax was paid and the services meet the input service definition.

Service tax paid on input services is admissible as CENVAT credit where the services are used as input services and fall within the definition in Rule 2(l) of the CENVAT Credit Rules, 2004. The Revenue's objection that the services were not taxable or were wrongly subjected to tax did not defeat credit entitlement when the tax had in fact been paid and the credit claim was examined under Rule 3(1). The cited precedent on credit of duty or tax paid on inputs was applied to the facts, and the assessee obtained credit relief.

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Issues: Whether CENVAT credit of service tax paid on input services is admissible when the Revenue contends that the services were not taxable or were wrongly subjected to tax.

Analysis: The services in question were tax-paid and were used as input services by the assessee. The Revenue did not dispute that the services fell outside the definition of input service. The cited precedent on credit of duty or tax paid on inputs applied to the present facts, and the credit entitlement was examined with reference to the definition of input service under Rule 2(l) and the credit-taking entitlement under Rule 3(1) of the CENVAT Credit Rules, 2004.

Conclusion: The service tax paid on the input services was admissible as CENVAT credit to the assessee.

Final Conclusion: The impugned order was set aside and the assessee succeeded in obtaining CENVAT credit relief.

Ratio Decidendi: Service tax paid on services used as input services is admissible as CENVAT credit when the services are within the input service definition and the tax has been paid, notwithstanding the Revenue's objection that the services were not taxable.

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