Input Services used for Setting Up New Unit in Existing Facility Eligible for CENVAT Credit: CESTAT

CESTAT ruled that input services used for setting up a new unit within an existing facility are eligible for CENVAT credit. This decision goes against the revenue department’s argument that CENVAT credits only apply to ongoing operations. The ruling supports businesses seeking to expand their operations, allowing them to claim credits for new investments and promoting industrial growth by reducing tax burdens on initial investments.