2017 (6) TMI 635 - MADRAS HIGH COURT

Reversal of CENVAT credit - Whether in the facts and circumstances of the case, Rule 6(3)(c) of Cenvat Credit Rules, 2002, attracted, in cases, where the service tax on input services are not used in respect of trading activity but used only for taxable services? - Held that: - If, the appellant has accepted before us that he was not paying service tax on an activity, then the credit of services vis-a-vis input services could only be taken on a pro-rata basis, as per the formula stipulated in Rule 6(3)(c) - Having regard to the rule position and given the admitted fact that no separate accounts were maintained by the appellant, with regard to the taxable and non taxable services, clause (c) of sub rule 3 of rules 6 of 2004 Rules would apply - appeal dismissed - decided against appellant.