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2018 (12) TMI 305 - AT - Service TaxLiability of Service Tax - amount paid for services received from the foreign company under reverse charge mechanism - CENVAT Credit - common input services used for trading activity - Rule 6(3A) of the CENVAT Credit Rules, 2004 - Extended period of limitation. Non-payment of service tax - Service tax on services received from the foreign company - service tax with interest and penalty paid before issuance of SCN - Held that:- The appellant had accepted their liability and paid the entire amount of Service Tax with interest and later availed CENVAT Credit of the Service Tax paid, as mentioned in their written submission and the services stated in the said work-sheet were taxable services - analyzing the issue raised about proper classification of the service, in our opinion, would become more of academic exercise. consequently, the confirmation of demand of Service Tax, interest and penalty on this count in the impugned order does not merit interference and accordingly upheld. Recovery of proportionate CENVAT Credit availed on various input services used for trading activity - Held that:- The admissibility of CENVAT Credit availed on input services used in providing trading activity, is no more res integra and covered by the recent judgment of this Tribunal in the case of Commissioner of Service Tax, New Delhi Vs. AVL India Pvt. Ltd. [2017 (3) TMI 793 - CESTAT NEW DELHI] where this Tribunal analyzing the amendment to the definition of exempted services w.e.f. 1.4.2011 observed that since trading activity itself is not a taxable service or activity subject to excise duty, therefore, subsequent amendment considering trading activity as 'exempted service' cannot entitle the assessee to avail the proportionate credit on various input services attributable to the trading activity. Extended period of limitation - Held that:- The issue is clarified in the case of M/S AKSH OPTIFIBRE LIMITED VERSUS CCE, JAIPUR-I [2017 (11) TMI 1449 - CESTAT NEW DELHI], where it was held that The input services, on which credit was availed by the appellant, were consumed for trading activities and such credit could not have been availed or taken for discharging service tax on the services provided by the assessee, there is no scope for any interpretational misconceptional on this aspect - extended period rightly invoked. The impugned order is upheld and the appeal is dismissed - decided against appellant.
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