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2023 (6) TMI 701 - AT - Service TaxCENVAT Credit - trading activity - proportionate input credit attributable to the trading activity of the appellant, confirmed under Rule 14 of the CENVAT Credit Rules (CCR), 2004 read with Section 73 (1) of the Finance Act, 1994 - whether the demand raised by the Commissioner of Central Excise and Service Tax, Large Taxpayer Unit, Chennai, is in order? - HELD THAT:- The stand of the Revenue is volatile, that is to say, from the findings of the Commissioner in the impugned order, the proposed demand in the Show Cause Notice did not have any legal sanctity as the same, apparently, was not as per the law as prevalent during the period in dispute. Moreover, there is a mention about the claim of the appellant to have maintained separate accounts in respect of input services utilized for taxable and exempted services. There is also an admission as to the appellant maintaining separate accounts at paragraph 13.1 of the impugned order, which is also extracted above as ready reference, but however, for something happened in the earlier years, for which the adjudicating authority is clearly functus officio, he concludes to hold that the appellant are not maintaining separate books of accounts for taxable and exempted services - The authority should have gone strictly by the facts and documents as available, since it is well understood that each year is independent and the facts may vary. Hence, it cannot be accepted that the above conclusion of not maintaining separate accounts which is a baseless allegation made without proper application of mind. The demand proposed in the Show Cause Notice and that which was confirmed in the impugned order, are not sustainable, for which reason the same deserves to be set aside - Appeal allowed.
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