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2018 (11) TMI 1223 - CESTAT CHENNAICENVAT Credit - common input services which were consumed for carrying out the activity of manufacturing dutiable goods and also for trading activity - non-maintenance of separate records - Held that:- he appellant seems to have confused with regard to traded goods and trading activity. The traded goods cannot be considered as an exempted goods whereas the trading activity as per Rule 2(e) of CENVAT Credit Rules, 2004 is an exempted service. The appellants do not have a case that they have maintained separate accounts with regard to the common input service used for trading and manufacturing activity - the demand raised is legal and proper and requires no interference. Penalty - Held that:- However, the appellant has been maintaining register with regard to the traded goods on the bonafide belief that they are maintaining separate accounts as provided under Rule 6(2) of CENVAT Credit Rules, 2004 and has not availed credit on such goods - the penalty imposed is unwarranted and requires to be set aside. Appeal allowed in part.
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