Meaning of exempted service

[Guest]

Under Cenvat Rules, whether exempted service means somthing which is not covered under the Service tax rules also ? If some service is not covered within the ambit of service tax can be termed as exempted service ?

AI Summary

Clarification on 'exempted service' under Cenvat Rules: Services without service tax are exempted per Rule 2(e). A query was raised regarding the definition of 'exempted service' under Cenvat Rules, questioning whether services not covered by service tax rules are considered exempted. The response clarified that according to Rule 2(e) of the Cenvat Credit Rules, exempted services are those on which no service tax is levied. Therefore, an activity qualifies as an 'exempted service' if it is a service by nature, even if not explicitly exempted through notifications or other rules.