TMI Blog2013 (8) TMI 801X X X X Extracts X X X X X X X X Extracts X X X X ..... For the Appellant: Shri P.C. Anand, Consultant For the Respondent: Shri K.S.V.V. Prasad, JC (AR) ORDER Per Mathew John; 1. The applicant is a Non-banking Financial Service Company (NBFC) providing services taxable under Finance Act, 1994 as also undertaking activities which are not taxable under Finance Act, 1994. They take credit of service tax paid on input services which are common to both taxable services and non-taxable activities. As per Cenvat Credit Rules 2004, they are eligible to take credit of service tax paid on input services used in relation to providing taxable services only. Where such segregation cannot be done, Rule 6 of Cenvat Credit Rules, 2004 provides different methods to arrive at the credit attri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Profit on sale of leased assets 85 242 4. Profit on securitisation / sell down of loans 2046 3125 5. Guarantee- Others 25 6 6. Dividend income 1881 876 7. Profit on sale of assets 11 37 5. The Counsel for appellant submits that the income from investments is the interest income accruing from investments made by the company in gilt edged securities like government bonds as per Rules prescribed by Reserve Bank of India. He argues that this cannot be considered as a trading activity. Similar is the argument in relation to dividend income which is from investment in shares. 6. Regarding the other major disput ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. He also points out that the type of services on which credit is taken or the receipts from trading activities are not disclosed in ST-3 returns and hence extended period of time is rightly invoked against the applicant. 12. We have considered submissions on both sides. The question whether making investments in gilt edged securities amounts to a service or trading for the purpose of Cenvat credit can be a contentious issue which needs to be heard at length during final hearing. But, we are not convinced about the argument that sale of loan portfolio is not a trading activity. Prima facie, it would appear that this is a trading activity and Cenvat credit cannot be taken on input services used for such activity. The argument regarding ti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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