Services used for port Expansion & Modernization eligible for CENVAT Credit: CESTAT

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT) ruled that services used for port expansion and modernization are eligible for CENVAT credit. This decision was made in the case of a port operator who claimed credit for services used in infrastructure development. The tribunal clarified that such services are integral to the business operations of the port and qualify for input tax credit under the CENVAT Credit Rules. This ruling provides significant relief to port operators, ensuring that they can claim credit for expenses incurred in enhancing their infrastructure, thereby reducing their overall tax liability.