2012 (12) TMI 678

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....ommr.(AR) Per: Ashok Jindal: 1. By the impugned order, a demand of duty of Rs.297,77,33,460/- has been confirmed against the applicant along with interest and equivalent amount of penalty on the premise that the applicants are not maintaining separate accounts for input services, which have been used by them for their manufacturing and trading activities separately. 2. Heard both sides an....

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.... to trading activity, no credit is taken.     (c) For common inputs service, the applicant adopted a formula to take credit proportionately attributable to manufacturing activity. The applicant did not take any credit on inputs service attributable to trading activity at all. The amount of input service credit was calculated on the basis of the sale. 5. The revenue is of the v....

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....opted by them. Therefore, provisions of Rule 6(2) of the CENVAT Credit Rules, 2004 are not applicable to them. He further submitted that they are covered by Rule 6(1) of the CENVAT Credit Rules, 2004. He further submitted that in 2008 an audit was conducted and it was ordered for verification of the method for availment of input service credit was ordered and it was found that the method adopted b....

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....d the submissions made by both sides and perused the records. On perusal of the records, we find that the applicants are not taking proportionate credit on input service attributable to trading activity. 10. In view of these observations, we are of the view that as the applicant has not taken credit of common input service attributable to trading activity. In these circumstances, the applicants....