Trading of goods- service before April 01, 2011

[VINOD KUMAR]

Is trading of goods is classifiable under service or exempted service before April 01, 2011 and whether rule 6 of CCR 2004 is also applicable before April 01, 2011.If so, please quote relevant statutory provisions.

AI Summary

Clarification Sought on Trading Classification Pre-April 2011: Service or Exempted? Rule 6 of CENVAT Credit Rules 2004 Applicability A query was raised about whether the trading of goods was classified as a service or exempted service before April 1, 2011, and if Rule 6 of the CENVAT Credit Rules 2004 applied before that date. One respondent indicated that tribunals have sometimes classified trading as a service, suggesting the 10% rule is not applicable due to the lesser proportion of services consumed in trading compared to manufacturing. The inquirer expressed gratitude for the response.