2018 (6) TMI 877 – CESTAT NEW DELHI – TMI – CENVAT credit – common input services for manufacturing as well as trading activity – demand of 6% of the value of the said trading activity, in terms of provisions of Rule 6 (3)(i) of CCR – Held that:- The appellants took a categorical stand before the lower authorities that they have reversed the proportionate credit of tax relatable to the trading activity, thus, not having any legal obligation to pay 6% of the value of said service – when the proportionate credit relatable to exempted services/ goods stand reversed by assessee, the effect of the same would be, as if no credit was ever availed. In such a scenario, there would be no requirement on the part of the assessee to pay a particular pe
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initiated proceedings against them for confirmation of 6% of the value of the said trading activity, in terms of provisions of Rule 6 (3)(i) of Cenvat Credit Rules. Proceedings resulted in passing of the impugned order, confirming the demand and imposing penalties. 3. It is seen that the appellants took a categorical stand before the lower authorities that they have reversed the proportionate credit of tax relatable to the trading activity, thus, not having any legal obligation to pay 6% of the value of said service. However, the lower authorities while accepting that reversal stand made, rejected the assessee s stand by observing that they have not exercised an option of maintaining separate accounts, in terms of Rule 6(3). As such, they a
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