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2014 (1) TMI 1111 - CESTAT BANGALOREDenial of cenvat credit – Input services used in trading activity – Waiver of pre-deposit – Whether trading activities were ‘exempted services’ or not - Held that:- The demand raised in the show-cause notice was a demand in terms of Rule 6(1) and not anything under Rule 6(3A) - Trading activities came to be christened as exempted services for purposes of Rule 6(3) as late as in 2011 - The legal fiction was created only for purposes of Rule 6(3) - Prima facie, it has nothing to do with Rule 6(1) - CENVAT credit was taken on input services which were used in trading activities, and utilized it for payment of duty on their excisable products - As trading activities have never been recognized by the statute as taxable services, prima facie, the appellant was not entitled to take CENVAT credit on input services which were used in trading activities during the material period – Thus, denial of CENVAT credit cannot be faulted – Appellant is directed to deposit Rupees two lakhs as pre-deposit – upon such submission rest of the duty to be waived till the disposal – Partial stay granted.
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