CESTAT says excise rule does not apply to service tax in HUL case
In short
The CESTAT ruled in Hindustan Unilever’s favor and set aside a denial of CENVAT credit. It said section 5A(1A) of the Central Excise Act does not apply to service tax, and the publisher summary says credit is allowed on service tax paid by job workers.
This matters for HUL and similar companies that use job workers. The reporting does not say how much tax was at stake or what happens next.
What the reporting says
The CESTAT has quashed a CENVAT credit denial to Hindustan Unilever, holding that section 5A(1A) of the Central Excise Act is inapplicable to service tax. The publisher summary says CENVAT credit is allowable on service tax paid by job workers. The reporting does not state the amount involved, the assessment period, or whether the department will appeal, so the financial effect is not stated.
Why it matters
The CESTAT has ruled that section 5A(1A) of the Central Excise Act does not apply to service tax, and it quashed a CENVAT credit denial involving Hindustan Unilever. The publisher summary says credit is allowable on service tax paid by job workers. That is relevant for manufacturing and outsourcing arrangements, but the available reporting does not give the disputed credit amount or the broader scope of the ruling.