𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 – 𝗖𝗘𝗦𝗧𝗔𝗧 𝗔𝗵𝗺𝗲𝗱𝗮𝗯𝗮𝗱: 𝗖𝗲𝗻𝘃𝗮𝘁 𝗖𝗿𝗲𝗱𝗶𝘁 𝗔𝗱𝗺𝗶𝘀𝘀𝗶𝗯𝗹𝗲 𝗳𝗼𝗿 𝗡𝗼𝗻-𝗧𝗮𝘅𝗮𝗯𝗹𝗲 𝗢𝘂𝘁𝗽𝘂𝘁 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗶𝗳 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗶𝘀 𝗣𝗮𝗶𝗱 📢 𝗧𝗵𝗲 𝗧𝗿𝗶𝗯𝘂𝗻𝗮𝗹 𝗵𝗲𝗹𝗱: "Cenvat credit is available for input services used in non-taxable output services on which service tax is paid, as it creates a revenue-neutral situation."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: Gautam Freight Private Limited 𝗜𝘀𝘀𝘂𝗲: The issue was whether export cargo handling services qualify for Cenvat credit despite being non-taxable under Port or Cargo Handling Service. 𝗔𝗰𝘁𝗶𝘃𝗶𝘁𝘆: The appellant provided export cargo handling services, paid service tax on such services, and availed Cenvat credit for service tax paid on relevant input services.

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal ruled that Cenvat credit is admissible for input services used in non-taxable output services, as long as service tax has been paid. Despite export cargo handling services being non-taxable, the appellant paid more service tax than the Cenvat credit availed, leading to a revenue-neutral situation. The case was remanded for verification.

📜 𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: Gautam Freight Pvt. Ltd. vs. Commissioner of Central Excise – Service Tax 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 28 November 2022 📜 This ruling underscores that payment of service tax on non-taxable services may entitle taxpayers to Cenvat credit, especially in cases of revenue-neutral outcomes.