2017 (4) TMI 1174

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....ice, Security service etc., and used the same for providing taxable services as well as for trading of beauty products. The Department entertained the view that credit cannot be availed on common input services used for taxable services as well as trading activities which are exempted services. A Show Cause Notice dated 16.10.2012 was issued to the appellant covering the period April 2008 to March 2012 alleging irregular availment of credit, raising a demand of Rs. 1,69,239/- along with interest and also proposing to impose penalties. After due process of law, the original authority confirmed the demand, interest and imposed equal amount of penalty. In appeal, the Commissioner (Appeals) upheld the same. Hence this appeal. 2. On behalf of....

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....i. - Bang.)] and New Allenberry Works Vs. CCE, Delhi-IV [2014 (35) STR 544 (Tri. - Del.)]. 4. Per contra, on behalf of the Department Ld. AR, Sh. Guna Ranjan reiterated the findings in the impugned order. He submitted that trading being an exempted service the appellants ought to have maintained separate accounts for the common input service used for taxable services and trading services. The demand is raised by calculating the 8%/6%/5% of the value of trading activities for the relevant period. That the same is calculated on the basis of the formula given in Rule 6(3A)b(iii). That therefore, the amount demanded is right and proper. It is also contended by the AR, that appellants having used common input services for trading activities i....

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....such method. The computation method taken by the appellant to arrive at the figure Rs. 2,74,122/- is the method for computing in case of trading w.e.f. 01.04.2011. AS this is the formula/method provided by legislature for computing value in case of common inputs/input services used for trading activities when there is no separate accounts, I am of the view that application of this method to arrive at the value would be more appropriate though it was introduced w.e.f. 01.04.2011 only. Therefore, I direct the jurisdictional Superintendent to compute the value/amount of credit of common input services attributable to trading activity falling within the normal period as per the method provided in Rule 6(3D) (c) of CENVAT Credit Rules as applica....