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2013 (8) TMI 377 - CESTAT NEW DELHICENVAT credit - reversal of credit related to trading activity - Revenue was of the view that assesse had irregularly availed CENVAT credit given in respect of the exempted service – held that:- prima facie no serious infirmity in the process adopted by the adjudicating authority for arriving at the quantum of cenvat credit irregularly availed by the assesse which requires to be disallowed - Orion Appliances Ltd. vs. CST, Ahmedabad [2010 (5) TMI 85 - CESTAT, AHMEDABAD ] - it was quite clear that since trading activity was nothing but purchase and sales and was covered under state sales tax law, it may not be appropriate to call it a service. Therefore it had to be held that trading activity cannot be called a service and therefore it cannot be considered as an exempted service also – adjudication order sets out the reasons for disregarding the assesse’s assessment of the allocation of the cenvat credit availed between the taxable Business Auxiliary Service. - We prima facie find no serious infirmity in the process adopted by the adjudicating authority for arriving at the quantum of cenvat credit irregularly availed by the petitioner which requires to be disallowed. Extended Period of Limitation – Waiver of Pre-deposit - Whether the extended period of limitation ought to be invoked – Held that:- The matter to be considered at the hearing of the appeal - We therefore consider it appropriate to grant waiver of pre-deposit and stay all further proceedings on condition that the assesse remitted the entirety of the cenvat credit disallowed, including the interest thereon (but excluding the component of penalty under Sections 77 and 78 and Rule 15(3) and 15(1) of the Cenvat credit Rules, 2004) – stay granted.
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