CENVAT Credit Reversal on Trading Goods: Rule 6(3) Demand Deemed Inconsistent with Central Credit Rules and Legal Principles.

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....CENVAT credit - common input services - the effect of reversal is as if no credit was availed in respect of the common services which were utilized for trading of the goods - In such a scenario, further demand of a particular percentage of the value of the traded goods in terms of Rule 6(3) is neither in accordance with the provisions of CCR nor with the settled principle of law - demand unsustainable....