Partial Relief to Godrej: CESTAT Rejects Retroactive CENVAT Credit Reversal, Orders Review of Credits Post-2011 Amendment

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) granted partial relief to Godrej Consumer Products Ltd. (GCPL) in a dispute over CENVAT credit related to advertising services. The tribunal rejected the retrospective reversal of CENVAT credit but ordered a recalculation of credits for the period following the 2011 amendment to the law. This ruling highlights the importance of the 2011 amendments in determining CENVAT credit eligibility and reinforces that retrospective reversals without proper legal grounds are impermissible.