2023 (11) TMI 465

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....ured. They have also availed facilities of cenvat credit under Cenvat Credit Rules, 2004. Head office of the appellant is engaged in trading of certain oils. It was observed by Revenue that the appellant has availed cenvat credit on certain common input services such as security service, commission, transport of goods by road, cleaning services etc. which were used by them for trading and manufacturing activities. Therefore, it appeared to Revenue that for the year 2011-12 and 2012-13, trading being exempted service, appellant was required to pay an amount of Rs.51,45,637/- under Rule 6(3)(i) of Cenvat Credit Rules, 2004. Therefore, a show cause notice dated 29.11.2013 was issued to the appellant, wherein the appellant was called upon to sh....

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....ing, Hon'ble Telangana High Court has held that if an output service provider does not exercise one of the options provided under the said Rule 6, then the provisions of the rule do not contemplate Revenue to choose one of the options on behalf of the service provider. He has submitted that Revenue has not pointed out in the subject show cause notice the quantum of credit availed by the appellant on common input services. He has also submitted that one of the options given under the said Rule 6 is that the assesse can reverse cenvat credit attributable to exempted service. He has submitted that even now they are ready to pay attributable cenvat credit out of cenvat credit availed on common input services which has gone into the exempted ser....