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2018 (5) TMI 1189 - AT - Central ExciseExtended period of limitation - CENVAT credit - common input services both for manufacturing of dutiable goods and the traded goods - non-maintenance of separate records - Held that: - the judgment of the Hon'ble High Court of Madras in the case of Ruchika Global Interlinks [2017 (6) TMI 635 - MADRAS HIGH COURT] has held justifying the invocation of extended period of limitation on the ground that the assessee has not disclosed the availment of input service credit in respect of trading activities. The appellant for the period from 01/04/2011 has already reversed the proportionate credit and now the dispute is relating to the period up to 01/04/2011 - further, for the purpose of denying the CENVAT credit, the Revenue has considered the entire value of the turnover and has demanded an amount of ₹ 15,13,218/equal to 8% / 6% / 5% of the value of exempted services as applicable for the relevant period. The Revenue cannot demand CENVAT credit on entire turnover of trading and has to follow the procedure for determining the value of the trading goods for the purpose of Rule 6 of CCR. There is no infirmity in the impugned order which is upheld subject to the quantification of CENVAT credit to be disallowed on the basis of the formula prescribed under Rule 6(3), after that, interest and penalty should be accordingly quantified - Appeal allowed in part.
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