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2018 (9) TMI 316 - AT - Service TaxCENVAT Credit - trading activity - common input services availed for taxable service as well as for trading - non-maintenance of separate records - what is the amount that the appellant has to reverse when common input services have been used for taxable service as well as trading when separate accounts have not been maintained? Held that:- With effect from 1.4.201, the position is very clear for the reason that trading has been made a deemed exempted service and Rule 6(3D)(c) of CENVAT Credit Rules clearly provided for the formula to arrive at the amount that has been reversed. However, for the period prior to 1.4.2011, there was much confusion as to whether trading is an exempted service or can be considered as service at all - In Ruchika Global Interlinks Vs. Commissioner of Central Excise [2017 (6) TMI 635 - MADRAS HIGH COURT], the jurisdictional High Court has held that the trading is to be considered as an exempted service prior to 1.4.2011 also. The appellant is required to reverse the credit as per the formula in Rule 6(3D)(c) of CENVAT Credit Rules, 2004 in respect of trading. However, the said amount has to be quantified - The appellant also contends that they have reversed the said amount pertaining to trading. This requires verification and for its quantification of the amounts that has to be reversed by the appellant, the matter is remanded. Appeal allowed by way of remand.
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