https://www.taxtmi.com/caselaws?id=795649 Trading of bought-out goods is treated as an exempted service solely for Rule 6 of the Cenvat Credit Rules, requiring reversal of common input service credit without subjecting goods sales to service tax. Where common services support both manufacture and trading, the prescribed value of trading under Explanation (c) must be included in exempted turnover for proportionate credit reversal; non-availment of credit on traded goods does not remove this requirement. Excluding that value causes short reversal, and non-disclosure of trading turnover may support the extended period, interest and penalty, subject to conditions for any reduced-penalty benefit. en-us Tue, 21 Jul 2026 00:00:00 +0530 Sat, 25 Jul 2026 08:54:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=795649 Trading of bought-out goods is treated as an exempted service solely for Rule 6 of the Cenvat Credit Rules, requiring reversal of common input service credit without subjecting goods sales to service tax. Where common services support both manufacture and trading, the prescribed value of trading under Explanation (c) must be included in exempted turnover for proportionate credit reversal; non-availment of credit on traded goods does not remove this requirement. Excluding that value causes short reversal, and non-disclosure of trading turnover may support the extended period, interest and penalty, subject to conditions for any reduced-penalty benefit. Case-Laws Central Excise Tue, 21 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=795649