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2018 (6) TMI 1433 - AT - Service TaxCENVAT credit - Trading activity - common inputs/input services - Rule 6 (3) (i) of the CCR 2004 - case of Revenue is that Since trading of goods was considered as an exempted service, the appellant was required to pay an amount at the rate of 5%/ 6% of the value of exempted services in terms of Rule 6 (3) (i) of the CCR 2004 - Held that:- Tubes, flaps etc are procured by the appellant with the objective of supplying the same along with tyres manufactured by them. It is further seen that the flaps as well as tubes are packed inside the tyre and tube partially inflated to form the tyre set. From this it is evident that the tube and flap are nothing but accessories for the tyre and are cleared together with the tyre. It is nobody’s case that the tyre can be used without the tube and flap. The activity of procurement of tube/ flap and clearing the same along with tyre as sets cannot be termed to be activity of trading. Consequently, the demand made by the lower Authority in terms of Rule 6 (3) ibid cannot be sustained. Appeal allowed - decided in favor of appellant.
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