Cenvat credit availment on reimbursement of expenses

[Guest]

Dear Sir, Can we avail cenvat credit on reimbursement of expenses of clearing and forwarding agency services,please explain and under which rule

AI Summary

Cenvat Credit Approved for Clearing and Forwarding Services as 'Input Services' Under Rule 2(l) of Cenvat Credit Rules, 2004. A query was raised regarding the eligibility to avail Cenvat credit on reimbursement of expenses for clearing and forwarding agency services. A response referenced a legal case where it was determined that services such as rent-a-cab for employee conveyance and clearing and forwarding for goods transportation qualify as 'input services' under Rule 2(l) of the Cenvat Credit Rules, 2004. The judgment highlighted that these services are integral to business operations and manufacturing activities, thus allowing the assessee to claim Cenvat credit. The appeal was decided in favor of the assessee, overturning the lower authorities' decision.