https://www.taxtmi.com/caselaws?id=785749 Amendment inserting Explanation 3 expanded the scope of "exempted service" under the CENVAT Credit Rules to include activities not previously regarded as services, thereby restricting CENVAT credit availment; this expansion should operate prospectively from 01.04.2016. Investment of idle funds in mutual funds is not a service under the statutory definition unless a person performs an activity for another for consideration, so mere deployment of surplus funds does not constitute a service. For periods after 01.04.2016, revenue must establish that inputs or input services were actually used for the investment activity before invoking the Rule 6 CENVAT credit reversal mechanism. en-us Tue, 20 Jan 2026 00:00:00 +0530 Fri, 30 Jan 2026 09:55:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=785749 Amendment inserting Explanation 3 expanded the scope of "exempted service" under the CENVAT Credit Rules to include activities not previously regarded as services, thereby restricting CENVAT credit availment; this expansion should operate prospectively from 01.04.2016. Investment of idle funds in mutual funds is not a service under the statutory definition unless a person performs an activity for another for consideration, so mere deployment of surplus funds does not constitute a service. For periods after 01.04.2016, revenue must establish that inputs or input services were actually used for the investment activity before invoking the Rule 6 CENVAT credit reversal mechanism. Case-Laws Service Tax Tue, 20 Jan 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=785749