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2014 (5) TMI 418 - AT - Service TaxCENVAT Credit - Cenvat credit of Service Tax on the value of the input services used for trading activity - Held that:- Even if the services, in question, were common input services for manufacturing as well as trading activity and trading is treated as an exempted service, since Cenvat credit is available in respect of manufacture of dutiable final product or providing of taxable services, the Cenvat credit could be denied only in he proportion to the extent the input services had been used in or in relation to the trading activity. Moreover, when the appellant were filing returns in respect of their manufacturing activity as well as trading activity, we are of prima facie view that the department cannot be unaware of the fact that the appellant were engaged in both the activities from the same premises and the Department could not be unaware of the fact that they had availed Cenvat credit in respect of services which could be common inputs for both the activities. However, even if the extended period is not invoked, still the entire demand would not be time- barred. In view of this, this is not the case for total waiver as the appellant would not be eligible for Cenvat credit in respect of input services used in or in relation to trading activity. - Conditional stay granted.
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