https://www.taxtmi.com/caselaws?id=771478 CESTAT Kolkata set aside the demand for reversal of CENVAT credit on input services used for trading activity. The appellant, a manufacturer cum trader, had availed credit on input services used for both manufacturing and trading. The tribunal held that trading was not classified as an exempted service under Rule 2(e) of CENVAT Credit Rules prior to 01.04.2011, therefore no reversal was required for the relevant period. The appellant had already suo moto reversed credit exclusively used for trading with interest before the show cause notice. The tribunal found the department failed to establish inadmissibility of credit or invoke Rule 6, making the proceedings void ab initio. Consequently, demands for interest and penalty were also set aside. en-us Fri, 25 Apr 2025 00:00:00 +0530 Tue, 27 May 2025 08:32:45 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=771478 CESTAT Kolkata set aside the demand for reversal of CENVAT credit on input services used for trading activity. The appellant, a manufacturer cum trader, had availed credit on input services used for both manufacturing and trading. The tribunal held that trading was not classified as an exempted service under Rule 2(e) of CENVAT Credit Rules prior to 01.04.2011, therefore no reversal was required for the relevant period. The appellant had already suo moto reversed credit exclusively used for trading with interest before the show cause notice. The tribunal found the department failed to establish inadmissibility of credit or invoke Rule 6, making the proceedings void ab initio. Consequently, demands for interest and penalty were also set aside. Case-Laws Central Excise Fri, 25 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=771478