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2017 (10) TMI 650 - CESTAT MUMBAICENVAT credit - items like motors, generator, engine, remnant oil etc cleared by them after breaking of the ship - demand has been raised holding the activity of selling motors, generator, engine, remnant oil etc as trading - Rule 6 of CCR - Held that: - what the appellants are purchasing is a ship for the purpose of breaking. The appellants are breaking the ship and as a result certain items are recovered. The scrap so generated is sold by appellants on payment of central excise duty. Other items generated are sold by them as it is. The items in respect of which demands for revenue under Rule 6 of Cenvat Credit Rules have been made are not purchased by appellants but are part of the ship when it is imported. In this regard, the activity of the appellants cannot be considered as trading activity - appeal allowed - decided in favor of appellant.
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