Trading was not an ‘exempted service’ prior to 1-4-2011: CESTAT allows Pidilite Industries to retain Cenvat Credit

In a significant ruling, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) allowed Pidilite Industries to retain CENVAT credit, ruling that trading activities were not considered an exempt service prior to April 1, 2011. The dispute arose over whether the company was entitled to retain credit on input services used for trading activities before the 2011 rule change. The Tribunal upheld that prior to the specific amendment, there was no legal basis for denying such credits. This ruling clarifies the CENVAT credit eligibility concerning trading services during the pre-amendment period.