Bank Guarantee Charges for Raw Material Procurement Covered Under Input Service u/r 2(l): CESTAT allows Bajaj’s CENVAT Claim [Read Order]
The tribunal noted that bank charges for guarantees are linked to raw material purchases for manufacturing. This qualifies as an "input service" under Rule 2(l) as the definition includes services related to procurement, financing, and other business needs
The Mumbai bench of the Customs, Excise, and Service Tax Appellate Tribunal ( CESTAT ) granted relief to Bajaj Auto Ltd. and allowed the assessee to claim CENVAT credit of Rs. 28.83 lakhs on disputed service, noting that bank guarantee charges for raw material procurement is covered under input service under Rule 2(l) of the…
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