CESTAT Sets Aside CENVAT Credit Demand as Manpower Services Were Not Used Exclusively for Exempt Activities

Sundaram Finance Pvt. Ltd. Vs Commissioner of GST & Central Excise (CESTAT Chennai) The appeal challenged an Order-in-Original dated 31.08.2016 that confirmed a demand of service tax, interest, and penalty under Section 78 of the Finance Act, 1994 for the period 2011-12 to September 2014. The dispute concerned the appellant’s availment of CENVAT credit on manpower services received from two agencies while acting as a corporate agent for insurance companies and as a mutual fund distributor. The Department alleged that the manpower services were used exclusively for providing insurance aux...