https://www.taxtmi.com/caselaws?id=76128 Trading activity is not a service and therefore cannot be treated as an exempted service for credit purposes. Where common input services are used both for taxable output services and for trading, the Cenvat Credit Rules, 2004 and Service Tax Credit Rules, 2002 do not permit credit attributable to trading, because that portion falls outside the service-tax credit scheme. The proper method is periodic segregation of the trading-related portion on a reasonable basis using standard accounting principles, with reversal or exclusion of ineligible credit before availing the balance. Credit attributable to trading is inadmissible, and the matter requires quantification after such segregation. en-us Fri, 07 May 2010 00:00:00 +0530 Fri, 29 Aug 2025 12:30:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=76128 Trading activity is not a service and therefore cannot be treated as an exempted service for credit purposes. Where common input services are used both for taxable output services and for trading, the Cenvat Credit Rules, 2004 and Service Tax Credit Rules, 2002 do not permit credit attributable to trading, because that portion falls outside the service-tax credit scheme. The proper method is periodic segregation of the trading-related portion on a reasonable basis using standard accounting principles, with reversal or exclusion of ineligible credit before availing the balance. Credit attributable to trading is inadmissible, and the matter requires quantification after such segregation. Case-Laws Service Tax Fri, 07 May 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=76128