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2021 (8) TMI 907 - AT - Central ExciseCENVAT Credit - input services - services used for carrying out trading of lube oil in the factory premises at Chennai - Rule 6(3) of CENVAT Credit Rules, 2004 - HELD THAT:- It was noticed by the department that the appellant had availed CENVAT credit on various input services based on the invoices issued by the service provider as well as on the basis of ISD invoices issued by their regional and head office. The department entertained a view that as the appellants were carrying out trading in the factory premises where from the lube oil received from other factories were sold and since trading is deemed as exempt services, the appellants have to reverse the credit availed on the input service used for such trading activity. The appellant has also produced a copy of the reply to the RTI application dated 10.8.2021 wherein department has stated that no appeal has been filed against the order passed by the Commissioner (Appeals). It was held by the Commissioner (Appeals) that no exempt services / trading is rendered by the appellant through their registered depot at the Chennai lube plant which is only a place of removal for various manufacturing units. There are no hesitation to hold that the demand cannot sustain - appeal allowed - decided in favor of appellant.
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