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2018 (3) TMI 629 - AT - Service TaxCENVAT credit - common input services which were used for trading activities as well as for providing output services - Since the credit availed on trading activity is not eligible for credit as well as for the reason that certain input services were used exclusively for trading purpose, two show cause notices dated 19.4.2012 and 12.10.2012 were issued for the period covering from April 2009 to March 2011 - Held that: - It is very much clear from the facts of the case that the appellant have been maintaining separate records for the common inputs used in trading and taxable output service. This itself brings out the bonafide belief of the appellant that they were under the impression that their activity is an exempted service and would be able to avail credit by following the procedures under Rule 6 (2) and (3). Further, they have been filing service tax returns regularly and they have been subjected to periodical audit. The appellant cannot be saddled with intention to evade payment of service tax. There is no other evidence brought out by the department to conclude that the appellant is guilty of suppression of facts with intent to evade payment of service tax so as to invoke extended period of limitation - SCN is time-barred. Appeal allowed - decided in favor of appellant.
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