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TMI Blog2014 (12) TMI 699X X X X Extracts X X X X X X X X Extracts X X X X ..... to be considered as exempted service for the period prior to 01.04.2011 even though the same has been identified as an exempted activity only from 01.04.2011? 2. Whether in the facts and circumstances of the case, the Tribunal was right in giving effect to the amendment introduced to the definition of exempted service for the period prior to 01.04.2011? 3. Whether in the facts and circumstances of the case, the Tribunal was right in holding that the credit taken on input service is liable to be reversed even though there is no specific method of computation of value during the disputed period? 4. Whether in the facts and circumstances of the case, the Tribunal was right in holding that only the input services used directly or indi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. Alleging that the appellant had wrongly availed service tax credit and utilised the same for payment of central excise duty on an ineligible claim suppressing the third party source, a show cause notice was issued to the appellant, the relevant portion of which reads as follows: " 11. Therefore, F.L.Smidth Ltd., Dalmiapuram are hereby required to show cause to the Joint Commissioner of Central Excise, No.1, Williams Road, Cantonment, Tiruchirapalli within 30 days of the receipt of this notice, as to why: a) an amount of Rs. 17,21,791/- (Rupees seventeen lakhs twenty one thousand seven hundred and ninety one only) towards service tax and Education Cess to the tune of Rs. 33,047/- (Rupees thirty three thousand and forty seven only) bot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... firm the demand of Rs. 17,54,838 (Rupees Seventeen Lakh Fifty Four Thousand Eight Hundred and Thirty Eight only) (Ex.Duty - Rs. 17,21,791/- and Educational Cess: Rs. 33,047/-) from M/s.F.L.Smidth Ltd., Dalmiapuram demanded under the provisions of proviso to Section 11A(1) of the Central Excise Act, 1944 read with Rule 14 of the Cenvat Credit Rules, 2004. ii. I confirm the demand of interest on the above amount confirmed in (i) above, at appropriate rates under Section 11 AB of Central Excise Act, 1944 read with Rule 14 of the Cenvat Credit Rules, 2004. iii. I also impose a penalty of Rs. 10,000/- (Rupees Ten Thousand only) on M/s.F.L.Smidth Ltd., Dalmiapuram." 5. Aggrieved by the said order of the Adjudicating Authority, the appellant fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry and security, inward transportation of inputs or capital goods and outward transportation upto the place of removal." (emphasis supplied) 7. It is fairly admitted by the learned counsel appearing for the appellant that they are manufacturing and supplying pre-heaters to Dalmia Cement (B) Ltd. and there is no dispute that input service means service used by a provider of taxable service for providing an output service or used by the manufacturer, whether directly or indirectly in or in relation to the manufacture of final products and clearance of final products from the place of removal. 8. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtion of service tax relating to the commission paid on trading goods. The definition of 'input service' under Rule 2(l) of the CENVAT Credit Rules means any service used by a manufacturer whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products. In the present case, there is no dispute that the appellant availed credit on commission in respect of trading goods, which are not in or in relation to the manufacture of final products and therefore there are not eligible to avail credit on the commission paid on trading goods. 6. The learned counsel submitted that the appellant had not taken any CENVAT credit on input service attributable to trading. I do not find any merit i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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