CENVAT Credit Cannot Be Denied If Service Tax Is Paid and Accepted: CESTAT Remands All Nippon...

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has ruled that Cenvat Credit cannot be denied if Service Tax is paid and accepted. The tribunal has remanded All Nippon Airways' case for verification, underscoring the principle that once the underlying service tax has been duly paid and acknowledged by the authorities, the corresponding Cenvat Credit should not be arbitrarily denied. This decision provides crucial relief to businesses, ensuring that eligible credits are not withheld due to procedural technicalities, provided the fundamental condition of tax payment is met. It promotes fairness in tax administration and simplifies credit mechanisms.