<h1>Cenvat Credit Eligibility Clarified: Trading Activities Not Covered, Depots and Warehouses Qualify Under Cenvat Credit Rules, Rule 2(e).</h1> A common issue arises regarding the eligibility of Cenvat Credit on input services used in trading activities. According to Rule 2(e) of the Cenvat Credit Rules, 2004, exempted services are those exempt from service tax. Trading activities, not being services, do not qualify as exempted services, leading some to argue for unrestricted Cenvat Credit eligibility. However, Cenvat Credit is only applicable to input services used in manufacturing or providing output services. The CESTAT ruling in the case of a footwear company confirmed that credit is not available for services solely related to trading. However, services used at depots or warehouses, considered places of removal for excisable goods, are eligible for Cenvat Credit.