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2018 (12) TMI 426 - AT - Service TaxCENVAT Credit - common inputs and input services used of manufacture of goods as well as for taxable and exempt service - non-maintenance of separate records - Rule 6(3A) of CCR 2004 - Extended period of limitation - Held that:- The intention of the Legislature was that a manufacturer or a service provider should not avail the entire CENVAT credit of the service tax paid on common input services and should avail proportionate credit attributable to the taxable output service for which the CENVAT credit Rules provides for maintaining separate accounts. Appellant herein has followed this rule by taking the credit of only an amount which is attributable to the taxable services provided by him and not availing the CENVAT credit of the input services which are attributable to the trading activity. By availing only the CENVAT credit of the service tax paid attributable to the taxable services, in my view, appellant had complied with the provisions of Rule 6(2). The decision in the case of M/S. TRANS ASIAN SHIPPING SERVICES PVT LTD VERSUS THE COMMISSIONER OF CENTRAL EXCISE, CUSTOMS AND SERVICE TAX (VICE-VERSA) [2018 (9) TMI 922 - CESTAT BANGALORE], is directly applicable to the facts of present case, where it was held that the appellants have maintained separate records and as such, there is force in the arguments made by learned counsel for the appellant-assessee. Extended period of limitation - the records of the appellant were audited time and again by EA 2008 audit - Held that:- The audits were regularly conducted and this objection was never raised, in view of it, even on limitation also appellant succeeds. Appeal allowed on merits as well as on limitation.
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