Rule 9(1)(e) applicable for Reverse Charge Mechanism: CESTAT sets aside Cenvat Credit denial of Rs. 32.95 lakh

The CESTAT has ruled that the reverse charge mechanism under GST rules applies to specific services and sets aside the denial of Cenvat credit for a sum paid under reverse charge. The dispute arose from a claim where the taxpayer was denied Cenvat credit on services subject to reverse charge. The tribunal found that the services were covered under the reverse charge mechanism and that the credit should have been allowed. This ruling clarifies that businesses entitled to input tax credit can claim it even for services subject to reverse charge, as long as they meet the conditions outlined under the GST law. The decision ensures better clarity and consistency in the application of reverse charge provisions.