Cenvat Credit in respect of Input services

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A person who is registered with service tax and rendering taxable services and Trading of goods ( liable to VAT / sales Tax ) , can claim the CENVAT credit in respect of insurance charges , telephone services, hiring of car, etc using both for trading and services etc. 2. Whether CENVAT credit is available on cellular phone , both for prepaid and post paid? If yes, under which circular

AI Summary

Debate on CENVAT credit eligibility for mixed-use services; Rule 6 restrictions and direct relation requirement highlighted. A discussion on a forum addresses the eligibility of claiming CENVAT credit for input services, such as insurance, telephone services, and car hire, when used for both trading and taxable services. One participant asserts that these services qualify for CENVAT credit under the Cenvat Credit Rules, 2004. Another highlights restrictions under Rule 6 due to non-taxable trading activities, noting credit is available for office-used cell phones. A third contributor emphasizes the need for a direct relation between input and output services for CENVAT credit eligibility, criticizing inconsistent departmental interpretations favoring revenue over fairness.