CESTAT adjudicated a CENVAT credit dispute involving...

CESTAT adjudicated a CENVAT credit dispute involving manufacturing units and trading services. The tribunal found that the appellant maintained separate records for dutiable and exempted goods, correctly followed Rule 6(2) of CENVAT Credit Rules, 2004. The key issue centered on apportioning common input service credits between dutiable manufactured goods and exempted trading services. The tribunal ruled that the adjudicating authority incorrectly calculated credit reversal by not following Rule 6(3A)(b), thereby erroneously computing the proportionate credit. Ultimately, the tribunal set aside the previous order, allowing the appellant's appeal and confirming their entitlement to proportionate credit reversal under the prescribed regulatory framework.