Rule 6(5) CENVAT credit takes priority over Rule 6(3)(c), allowing full credit for specified taxable services.

A taxable service falling within the 17 specified categories under Rule 6(5) of the CENVAT Credit Rules, 2004 qualifies for full CENVAT credit because that provision operates as a non obstante clause. The general restriction in Rule 6(3)(c) does not apply where the service is covered by Rule 6(5), even if the service is not used exclusively for exempted services. As the services in question were not shown to be outside Rule 6(5), full credit was available to the assessee.

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Issues: Whether the assessee was entitled to full CENVAT credit on taxable services falling within the specified categories under Rule 6(5) of the CENVAT Credit Rules, 2004, despite the restriction under Rule 6(3)(c) of the said Rules.

Analysis: The taxable services on which service tax had been paid were within the 17 specified categories covered by Rule 6(5). That provision operates as a non obstante clause and overrides the restriction in Rule 6(3)(c) where the services are not used exclusively for exempted services. Since the services in question were not shown to fall outside Rule 6(5), the assessee was entitled to the entire credit.

Conclusion: The restriction under Rule 6(3)(c) did not apply, and the assessee was entitled to full credit. The issue is decided in favour of the assessee.

Ratio Decidendi: Where a taxable service falls within the specified categories under Rule 6(5) of the CENVAT Credit Rules, 2004, the non obstante provision permits full credit notwithstanding the general restriction under Rule 6(3)(c).

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