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2008 (2) TMI 784 - Commissioner - Service TaxCenvat credit of Service tax - Input services - common use in manufacturing and trading activities - Quantum of Penalty - Held that: - the manufacturer shall not be allowed to take input service credit when he uses the input services in providing exempted services - Whereas in the present situation the appellant was dealing in trading of similar goods. Therefore trading activity cannot be equated with exempted goods or exempted services used in the manufacture or in providing output services - it is clear that the advertisement and other services were utilized for items manufactured and marketed by the appellant, but incidentally the item imported were also sold. On that basis alone the input service credit availed by the appellant cannot be denied because there is no such situation envisaged under Rule 6 of Cenvat Credit Rules, 2004. Extended period of limitation - penalty - Held that: - this is a case of interpretation - the appellant acted with bona fide belief - invocation of longer period and imposition of equal penalty not sustainable. Appeal allowed - decided in favor of appellant.
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