CENVAT Credit on Exempted Services not Required in Apportionment with Dutiable Goods: CESTAT rules in

The Allahabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) ruled in favor of Honda Motors, stating that CENVAT Credit on input services exclusively used in dutiable goods should not be included in the total CENVAT Credit for apportionment between exempted services and dutiable goods. The tribunal found that the demand for CENVAT Credit was unsustainable, and consequently, no penalty or interest was recoverable. This decision provides significant relief to Honda Motors and clarifies the treatment of CENVAT Credit in cases involving both exempted services and dutiable goods.