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TMI Blog2017 (10) TMI 271X X X X Extracts X X X X X X X X Extracts X X X X ..... hich has been already discharged along with interest. 4. Ld. Counsel draws my attention to the facts of the case and submits that the issue is regarding the ineligible availment of CENVAT credit on input services like telephone, courier, insurance which are common for manufacturing activity and for the trading activity. It is his submission that during the course of audit of the accounts of the assessee, the audit party has worked out percentage of trading turnover to the total turnover and accordingly directed the appellant to reverse the CENVAT credit attributable to the trading activity. It is his further submission that though the appellant is not contesting on merits, they are relying upon the merits of the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ]. 6. On careful consideration of the submissions made, I find that the issue that falls for consideration is whether the appellant is eligible to avail the entire CENVAT credit of the common input services which are utilised for manufacturing and trading activity. It is undisputed that the period involved in this case is prior to 01.04.2011 wherein there was no definition of the trading activity. Prior to 01.04.2011, the various Benches of the Tribunal had taken a view that trading activity would not fall under the category of exempted services and hence assesses are free to avail the entire CENVAT credit on the inputs and input services. Further, the situation has changed after the decision of the Hon'ble Hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gal? After framing the above reproduced question of law, their lordships in paragraph 11, 12, after considering the entire provisions of the law held that the assessee cannot avail CENVAT credit of the common input services attributable to the trading activity; also upheld the penalties imposed on the said issue. The decision of the Hon'ble High Court of Madras being directly on the issue in hand, I find that the said decision has to be followed by the Tribunal in other cases. As regards the arguments of the Ld. Counsel that penalty cannot be imposed under a rule, the same stands answered by the decision of Hon'ble High Court in the case of M/s Ruchika Global Interlink. 9. In view of the foregoing, following ..... X X X X Extracts X X X X X X X X Extracts X X X X
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