https://www.taxtmi.com/caselaws?id=766680 CESTAT Chennai held that input service tax credit cannot be availed on services used for trading activities as trading constitutes exempted services. The tribunal relied on HC precedents establishing that credit cannot be taken on entire service tax paid when simultaneously engaging in taxable output services and trading activities. However, Rule 6(5) of Cenvat Credit Rules allows credit on specified services unless used exclusively for exempted services. The case was remanded to determine extent of credit eligibility on specified taxable services. Penalties were deemed unsustainable due to interpretational ambiguities and appellant's bona fide belief in credit entitlement. en-us Fri, 28 Feb 2025 00:00:00 +0530 Mon, 03 Mar 2025 08:22:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=766680 CESTAT Chennai held that input service tax credit cannot be availed on services used for trading activities as trading constitutes exempted services. The tribunal relied on HC precedents establishing that credit cannot be taken on entire service tax paid when simultaneously engaging in taxable output services and trading activities. However, Rule 6(5) of Cenvat Credit Rules allows credit on specified services unless used exclusively for exempted services. The case was remanded to determine extent of credit eligibility on specified taxable services. Penalties were deemed unsustainable due to interpretational ambiguities and appellant's bona fide belief in credit entitlement. Case-Laws Service Tax Fri, 28 Feb 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=766680