2023 (10) TMI 676

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....vat credit in respect of the services under the head of Management Consultancy Service received by them from a foreign person. 2.1 Learned counsel pointed out that the appellants were receiving management consultancy service and other services. In respect of all other services, the appellants were reversing the cenvat credit in proportion to the exempted services provided by them in terms of Rule 6 of Cenvat Credit Rules, 2004. However, in respect of Management Consultancy Service, they were not reversing the proportionate credit in respect of exempted services provided by them. Learned counsel pointed out that Management Consultancy Service is covered by the Rule 6(5) of Cenvat Credit Rules, 2004 which permitted them to avail 100% cenva....

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....are also engaged in trading activities. The Revenue is of the opinion that the trading activities are in the nature of exempted services and therefore, the appellants are required to reverse the cenvat credit proportionately in terms of Rule 6(1), Rule 6(2) and Rule 6(3) of Cenvat Credit Rules, 2004. On the other hand, the appellants are of the view that the service of 'Management Consultancy Service' is covered by Rule 6(5) of the Cenvat Credit Rules, which exempts them from the provisions of Rule 6(1), Rule 6(2) and Rule 6(3) of the Cenvat Credit Rules 2004. Rule 6(5) of the Cenvat Credit Rules, reads as under: "Notwithstanding anything contained in sub-rules (1),(2) and (3), credit of whole of Service tax paid on taxable service....