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2017 (8) TMI 833 - AT - Service TaxCENVAT credit - activity of trading - Rule 6 (3) of CCR, 2004 - Held that: - the Cenvat Credit Scheme is available only in respect of an assessee, who is either manufacturing dutiable final products or providing taxable output service. Admittedly, during the relevant time, trading is not categorized as service at all. It is only in 2011, the explanation was inserted under Rule 2 (e) of CCR, 2004 to the effect that “exempted service” includes “trading”. Prior to that date, trading is not even considered as “exempted service”. Going by this fact, it is clear that no credit is available on any “input service” attributable to “trading” during the material time. When no such credit is eligible, the respondent cannot avail the benefit of cenvat credit scheme. The Revenue’s appeal will succeed to an extent of reversal of cenvat credit for normal period along with applicable interest - appeal allowed - decided partly in favor of appellant.
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