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2017 (12) TMI 384 - AT - Central ExciseCENVAT credit - input services - renting of immovable property - telephone service - case of Revenue is that Renting of immovable property service and telephone services can be exclusively identified as used wholly by one unit. In these circumstances, it may attract the mischief of Rule 7 (c) of the CCR - Held that: - It is an admitted fact that the respondents apart from conducting manufacturing and provisions of services are also engaged in trading activity. Thus the credit of entire duty would not be available to them in respect of the premises which are exclusively engaged in trading activity. Thus if a premises is only used for trading activities then the distribution of credit exclusively attributable to such unit will result in revenue loss to the Government. Thus, apparently there is no revenue neutrality in the instant case. In the instant case Rule 7 (c) of the Cenvat Credit Rules, 2004 is attracted in respect of renting immovable property and telephone services - also, no evidence of Revenue neutrality has been produced. Since the appellants are, inter alia engaged in the trading activity also, there is no revenue neutrality as part of the credit attributable to the trading activity is not available to the appellants. Appeal dismissed - decided against Revenue.
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