Rule 6(2) and Rule 6(3) of the CENVAT Credit Rules, 2004 are not attracted when an assessee is engaged in providing ‘taxable output services’ and ‘trading activity’

The CESTAT (Ahmedabad Bench) in case of Orion Appliances Ltd. Vs CST, Ahmedabad

[Arising out of Appeal No. ST/120/09 and order dated 07-05-2010  has observed that Rule 6(2) and Rule 6(3) of the CENVAT Credit Rules, 2004 are not attracted in case where an assessee is providing ‘taxable output services’ and also undertaking ‘trading activity’.

Brief facts

• M/s. Orion Appliances Limited (‘Appellant’) was engaged in providing taxable output services as well as undertaking trading activity.

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