Thank you for the reply Rene.
I quickly checked on both NX 3k and 2960 but dont see encapsulation options available to start with. Is there any thing on the global config that could prevent this?
NX 3K [physical interface/ without VPC, standalone]
switch(config)# interface ethernet 1/2
switch(config-if)# switchport trunk ?
allowed Set allowed VLAN characteristics when interface is in trunking mode
native Set trunking native characteristics when interface is in trunking
mode
2960:
Switch(config)#interface GigabitEthernet0/12
Switch(config-if)#switchport trunk ?
allowed Set allowed VLAN characteristics when interface is in trunking mode
native Set trunking native characteristics when interface is in trunking
mode
pruning Set pruning VLAN characteristics when interface is in trunking mode