Reversal of Cenvat Credit under Rule 6

[rajesh somani]

Hi,

There is a company who is involved in trading of goods along with providing taxable services. Can rule 6 of  Cenvat Credit Rule, 2004 be made applicable to the company??

Thanks,

AI Summary

Reversal of Cenvat Credit applies where common input services are used for both taxable and exempted services.
When a company avails credit of common input services used for both taxable and exempted services, the provision requiring reversal or apportionment of Cenvat credit is applicable, and the portion attributable to exempted activities must be identified and reversed.