On credit reversal of common credit on exempted services

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal, by its order dated 6 August 2026, set aside the balance service tax demand and all penalties against Bank of India. The Tribunal held that the appellant should be permitted to quantify and reverse the actual common CENVAT credit with interest, remanding the matter to the adjudicating authority for verification.