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TMI Blog2014 (1) TMI 1421X X X X Extracts X X X X X X X X Extracts X X X X ..... hem, the services provided by one of the SBUs i.e., SBU-58, dealing with digital certification is fully exempted from service tax. Therefore, they did not take any CENVAT credit in relation to input services relatable to such activity. In respect of other SBUs, there were certain input services which were attributable only to taxable output services. They took CENVAT credit on the entire service tax paid on such input services. There were certain input services which were common to both taxable and exempted services. In respect of such services, they adopted the formula as prescribed under Rule 6(3A) and reversed credit attributable to exempted services. However, Revenue objected to this method in respect of credit taken by the applicant du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibutable to common input services has been denied whereas, major part of the input services turnover is in respect of taxable services and the turnover of exempted service is only a miniscule percentage of 1% to 2% of their total turnover. 4. In respect of the argument that they should have either followed Rule 6 (3A) for all the input services or maintained separate accounts of input services relating to taxable service and exempted services, the counsel argues that the stand is not supported by law because according to him Rule 6 applies only in respect of input services which are common to taxable and exempted output services. According to him where an input service is relatable to taxable services entirely the Rule 6 does not apply at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e entire input services if taken together and not after splitting it into two categories of that attributed fully to taxable service and that attributable to both taxable and exempted services. 7. We have considered the submissions on both sides. We are, prima facie , in agreement with the submission of the learned counsel for the applicant that Rule 6 deals with only common input services used in providing taxable services and exempted services and there is no reason to apply this rule in respect of input service going entirely into providing taxable output service. This is the tentative approach adopted in the earlier stay orders passed and we want to follow the same principle in the instant case as well. 8. We notice that the Commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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