CESTAT says Common CENVAT Credit Alone Governs Rule 6 Reversal

BHEL had calculated proportionate CENVAT reversal using only common credit, while Revenue sought reversal on total credit, including credit exclusively used for taxable services. CESTAT held that the Rule 6 formula, read harmoniously, covers only common credit and that the 2016 amendment was clarificatory and retrospective. The Tribunal also held that trading is a sale of goods, not an exempt service for Rule 6 purposes.