TMI Blog2018 (9) TMI 316X X X X Extracts X X X X X X X X Extracts X X X X ..... iod prior to 1.4.2011, there was much confusion as to whether trading is an exempted service or can be considered as service at all - In Ruchika Global Interlinks Vs. Commissioner of Central Excise [2017 (6) TMI 635 - MADRAS HIGH COURT], the jurisdictional High Court has held that the trading is to be considered as an exempted service prior to 1.4.2011 also. The appellant is required to reverse the credit as per the formula in Rule 6(3D)(c) of CENVAT Credit Rules, 2004 in respect of trading. However, the said amount has to be quantified - The appellant also contends that they have reversed the said amount pertaining to trading. This requires verification and for its quantification of the amounts that has to be reversed by the appellant, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /2012 1. Period of Demand April 2008 to March 2009 April 2009 to March 2011 2. Demand of CENVAT credit 86,05,464/- 1,93,20,468/- Interest under Rule 14 of CENVAT Credit Rules, 2004 r/w Section 75 of the Finance Act, 1994 Not quantified Not quantified Penalty under Rule 15(3) and Rule 15(4) of CENVAT Credit Rules, 2004 Only Rule 15(3) ₹ 10,000/- and penalty under Section 76 of the Finance Act, 1994 Equal penalty under Rule 15(4) r/w se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner of Central Excise 2015 (40) STR 381. 5. The ld. AR Shri K. Veerabhadra Reddy supported the findings in the impugned order. 6. Heard both sides. 7. The issue that has to be analyzed is only as to what is the amount that the appellant has to reverse when common input services have been used for taxable service as well as trading when separate accounts have not been maintained. With effect from 1.4.201, the position is very clear for the reason that trading has been made a deemed exempted service and Rule 6(3D)(c) of CENVAT Credit Rules clearly provided for the formula to arrive at the amount that has been reversed. However, for the period prior to 1.4.2011, there was much confusion as to whether trading is an exempted service ..... X X X X Extracts X X X X X X X X Extracts X X X X
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