Unsustainable Demand: Cenvat Credit Reversed on Exempted Services

Magnam Netlink Private Ltd Vs C.C.E. & S.T (CESTAT Ahmedabad)

The recent decision in Magnam Netlink Pvt. Ltd. Vs C.C.E. & S.T. by the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) in Ahmedabad brings forth crucial insights into the administration of the Cenvat Credit Rules, 2004. The central question of the case pertains to the appellant’s liability to pay an amount equivalent to 6%/7% of the value of exempted services like “Trading”, as stipulated under Rule 6 (3) of the Cenvat Credit Rules, 2004.

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