2017 (4) TMI 743

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....so engaged in trading of cement. The appellants utilised input services like advertisement services, chartered accountant services (Audit), Telephone/telegraph/ telex services which were common input services used for manufacturing of finished goods as well as trading activity. A show cause notice dated 06.01.2012 was issued covering the period December 2006 to March 2010, raising a demand of Rs. 7,68,646/- alleging that appellants have availed irregular credit for the reason that trading activity is to be considered as an exempted service. That appellants have thus violated Rule 6 of CENVAT Credit Rules, 2004. After due process of law, the original authority confirmed the demand alongwith interest and imposed equal amount of penalty. In ap....

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....ated the findings in the impugned order. He submitted that appellant is not eligible to take credit of the input services used for trading activities. 6. I have heard the submissions made before me. The issue whether the assessee is eligible to reverse credit when common input services have been used for manufacturing activity as well as for trading activity, has been analysed in the judgements relied upon by appellant. The Tribunal in the case of Mercedes Benz India Pvt. Ltd. (supra) has categorically held that amendment brought forth by notification No. 3/2011 incorporating trading activity also as an exempted service in the definition of exempted service , does not have retrospective effect. The said view has been upheld by Hon ble Hi....