TMI Blog2014 (2) TMI 481X X X X Extracts X X X X X X X X Extracts X X X X ..... 78% of the credit proportional to the turnover of manufacturing no finding is given - In view of these factors and the fact that the defects in ISD invoices are curable defects we are of the view that it is not proper to call for any pre-deposit for admission of appeal. Therefore, requirement of pre-deposit is waived and there shall be stay on collection of such dues during the pendency of the appeal - Stay granted. - E/41384/2013 - MISC. ORDER No.40121-40122/2014 - Dated:- 9-1-2014 - Shri P.K. Das and Shri Mathew John, JJ. For the Appellant : Shri R. Srinivasan, Adv. For the Respondent : Ms. Indira Sisupal, AC(AR) ORDER Per Mathew John: The applicant is a manufacturer of computers and they also provide certain servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubmitted to the Commissioner at Pages 36-39, the applicant had stated that they had distributed credit only after apportioning the total service tax amount paid on services received by them in proportion to the value of manufactured goods plus value of taxable service to the value of traded goods. They had also made it clear that from 01.04.2010, for working out the ratio for reversing credit they had taken only the difference between sale price and purchase price of the traded goods instead of value of traded goods, because the change in Cenvat Credit Rules on account to newly introduced Rule 6 (3D) (c). In fact, the percentage of credit taken for the financial year 2009-10 was stated to be only 34.78% of the amount of service tax paid. Si ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct of large number of services like Advertisement, Business Auxiliary Services, passed on by the ISD at Bangalore to Pondicherry factory were ineligible credit because they were not used directly or indirectly in or in relation to manufacture or used in the activities specified in Cenvat Credit Rules, 2004. Therefore, the adjudicating officer came to the conclusion that the credit taken was in relation to trading activities. She also submits that the appellant did not submit any document to contradict this proposition. Therefore, she submits that pre-deposit may be ordered. 6. We have considered submissions on both sides. We find that the Commissioner has not examined the service-wise eligibility for the credit involved but has only given ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to manufacturing activity. Hence, it appears that the said services could only be related to their Trading activity and such services pertaining to trading activity cannot be considered as input services for availing Cenvat credit of service tax paid on the same in terms of Rule 2(l) reading with Rule 3 of Cenvat Credit Rules, 2004. 28. Further, I observe from their reply describing the nature of services passed on through ISD invoices that the services viz., advertising charges, business auxiliary charges, commission charges, courier charges, consultancy fees, freight charges, insurance premium, IT software charges, maintenance charges, man-power charges, professional charges, recruitment charges, rental charges, telephone charges, train ..... X X X X Extracts X X X X X X X X Extracts X X X X
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