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2018 (8) TMI 1502 - AT - Central ExciseCENVAT credit - it was alleged that respondents had engaged himself in a trading activity which is an exempted service - Rule 6 of CCR - Held that:- The 1st appellate authority was correct in coming to a conclusion that when statutory provisions have been framed, the assessee who procures inputs on payment of duty for consumption cleared the same as such on payment of duty, cannot be considered as trading activity. In the case in hand, there is no dispute as to the fact that the respondent had procured manganese ore for the purpose of consumption and manufacturing activity in the premises. In the case in hand it is not the allegation of the Revenue that respondents have procured manganese ore for stocking and subsequent resale - there is not a single line of finding by the original adjudicating authority as to whether clearances of manganese ore as such amounted to trading activity or rendering of any services. If the clearances of inputs as such is allowed under the provisions of Rule 3 of the CENVAT Credit Rules subject to the condition mentioned therein, the clearances effected by the respondent of the excess raw materials procured cannot be termed as trading activity. Appeal dismissed - decided against Revenue.
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