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2015 (6) TMI 578 - CESTAT BENGLALOREDenial of CENVAT Credit - sale of finished goods after repacking - Held that:- In the new factory, proper packing was undertaken, and goods were cleared on payment of duty by utilizing the CENVAT credit of duty paid at the time of shifting of goods. I find that even if the appellants have not followed the provisions of Rule correctly, it is only a technical omission on the part of the appellant and it cannot be said that there is revenue loss. Moreover, the claim that appellants had done proper packing for the purpose of marketing has not been contradicted or there is no contrary finding. The only claim of the department is that the finished goods were cleared and there was no process undertaken on it and therefore, the CENVAT credit could not have been taken. If the proper packing was not done and further packing was undertaken in the new premises, it would amount to clearance of semi-finished goods and in my opinion, the procedure followed by the appellant is acceptable. The second issue involved is the availment of CENVAT Credit by the appellant in respect of services which are utilized for trading as well as manufacturing. During the relevant period, the trading was not defined as a deemed service and therefore it can not be considered as an exempted service. Even though learned advocate offered to present detailed arguments on this issue, when it was pointed out that in the case of Orion Appliances Ltd., Vs CST Ahmedabad [2010 (5) TMI 85 - CESTAT, AHMEDABAD], the very same Member who is passing this order had taken a view that proportionate credit attributable to trading activity has to be reversed. - Decided partly in favour of assessee.
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