TMI Blog2017 (8) TMI 833X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. - ST/59454/2013-(DB) - ST/A/54773/2017-CU[DB] - Dated:- 6-7-2017 - Dr. Satish Chandra (President) And Mr. V. Padmanabhan Member (Technical) Present Shri Sanjay Jain, DR for the appellant Present Shri Varun Gaba Advocate for the respondent ORDER Per: V. Padmanabhan 1. The present appeal is filed by appellant against the Order in Original No.64/2013 dated 24/03/2013. The respondent is registered with the Service Tax C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trading cannot be considered as exempted service for the period prior to 01/04/2011. However, he argued that the Hon ble Bombay High Court in the case of Mercedes Benz India Pvt Ltd V/s Commissioner of C.EX., Pune-I reported in 2016 (41) STR 577 (Bom.) and CST, New Delhi V/s M/s AVL India Pvt. Ltd. vide Final Order No.52425/2017 dated 17/03/2017 has held that the same will be applicable even for the period prior to 01/04/2011. Accordingly, he prayed that the demand may be upheld. 4. The Ld. Counsel for the respondent submitted that for the period prior 01/04/2011, the Tribunal vide several decisions have held that the explanation inserted in Rule 2 (e) is applicable only for the period on or after 01/04/2011. Accordingly, he argu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considered as an exempted service (or service at all) then the cenvat credit scheme itself is not available to a trader. The respondent, being a trader as well as output service provider, has availed credit on common input services. Their failure to maintain separate accounts cannot give them an advantage of taking full credit on all common input services. This will have effect of nullifying the very principle that no credit is available when there is no taxable output service. In other words, it is very clear that the respondent is eligible to take credit on only such input services, which are attributable to taxable output services. If there are common input services, without separate accounts, it is necessary for the respondent to ava ..... X X X X Extracts X X X X X X X X Extracts X X X X
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