CENVAT credit for trading requires reversal, while taxable-service rental credit remains proportionately available and limitation issues await resolution.

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....CENVAT credit attributable exclusively to trading is inadmissible because trading is not an eligible output activity. Common input-service credit used for trading and taxable output services requires reasonable reversal, with the rule 6(3D)(c) formula proposed for quantification even before trading was expressly included as an exempted service. Proportionate credit on rented premises remains available where evidence establishes use for taxable services; a landlord's service-tax default does not by itself defeat that credit. Short-payment demands based on discrepancies between service-tax and income-tax returns require proof of deliberate intent to evade for extended limitation. Conflicting views remain on whether trading-related credit permits invocation of the extended period and consequential penalties, requiring Third Member determination.....