2017 (10) TMI 271

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....penalty and not disputing the duty liability which has been already discharged along with interest. 4.   Ld. Counsel draws my attention to the facts of the case and submits that the issue is regarding the ineligible availment of CENVAT credit on input services like telephone, courier, insurance which are common for manufacturing activity and for the trading activity.  It is his submission that during the course of audit of the accounts of the assessee, the audit party has worked out percentage of trading turnover to the total turnover and accordingly directed the appellant to reverse the CENVAT credit attributable to the trading activity.  It is his further submission that though the appellant is not contesting on mer....

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....uchika Global Interlinks [2017-TIOL-1235-HC-MAD-ST]. 6.   On careful consideration of the submissions made, I find that the issue that falls for consideration is whether the appellant is eligible to avail the entire CENVAT credit of the common input services which are utilised for manufacturing and trading activity.  It is undisputed that the period involved in this case is prior to 01.04.2011 wherein there was no definition of the trading activity.  Prior to 01.04.2011, the various Benches of the Tribunal had taken a view that trading activity would not fall under the category of exempted services and hence assesses are free to avail the entire CENVAT credit on the inputs and input services.  Further, the situat....