Input tax credit for Share Transfer Agent services is admissible when the services have a clear business nexus.

Service tax credit was admissible for Share Transfer Agent services because the services had a nexus with the appellant's business activities and were used in relation to providing output service. Credit cannot be denied merely because the service is not part of the core or principal business activity. The denial of input credit was therefore unsustainable.

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Issues: Whether service tax paid on Share Transfer Agent service availed by the appellant was eligible for input credit.

Analysis: The service was availed in relation to the appellant's business activities and the governing principle applied was that credit is available for services used in or in relation to the business of providing output service. Following the binding precedent relied upon, the disputed service could not be excluded merely because it was not part of the core banking activity.

Conclusion: The appellant was entitled to input credit of service tax paid on Share Transfer Agent service, and the denial of credit was not sustainable.

Ratio Decidendi: Input credit is admissible for services that have a nexus with the business of the assessee or are used in relation to providing output service, even if they are not part of the principal business activity.

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