CESTAT Allows Cross-Utilisation of Cenvat Credit Between ER-1 & ST-3 Returns

Balaji Industrial Corporation Ltd. Vs Commissioner of Central Tax (CESTAT Hyderabad) In Balaji Industrial Corporation Ltd. Vs Commissioner of Central Tax, the CESTAT Hyderabad addressed the issue of a company’s ability to transfer and utilize CENVAT credit between its manufacturing and service tax accounts. The appellant, Balaji Industrial Corporation Ltd., which was registered as both a manufacturer and a service provider, had discontinued its manufacturing operations. Subsequently, it transferred the remaining CENVAT credit from its Central Excise (ER-1) account to its service tax (ST-...