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2017 (4) TMI 1174 - CESTAT HYDERABADReversal of CENVAT credit - Rule 6(3A)b(iii) - credit availed on common input services used for taxable services as well as trading activities which are exempted services - Held that: - prior to 01.04.2011 the formula given in Rule 6(3A)b(iii) cannot be applied to trading activities for the reason that these are not exempted services. Since a computing method has been introduced w.e.f. 01.04.2011 the same can be adopted to arrive at the proportionate credit that has to be reversed when common input services are used for taxable services and trading activities prior to 01.04.2011 also - applying the judgment in the case of M/s TFL Quinn India Pvt. Ltd.[2016 (6) TMI 230 - CESTAT HYDERABAD], the appellant is liable to pay/reverse the amount of credit arrived at by applying the formula brought forth by the amendment w.e.f. 01.04.2011 - the demand raised beyond the normal period is time barred and requires to be set aside - Taking into consideration that the period is transitional period and also because the appellant has reversed the amount, no penalty is to be imposed - appeal allowed - decided partly in favor of appellant.
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