9911796707
TMI Blog2017 (7) TMI 526X X X X Extracts X X X X X X X X Extracts X X X X ..... Scientific Consultancy, Consulting Engineer, Maintenance and Repair Services, Business Auxiliary Services, Erection Commissioning and Installation Services, Transport of goods by road, Business Support Services and Work Contract Services. They were availing input service credit of service tax paid on input services. They were also engaged in trading of bought out goods. It came to the knowledge of Revenue that appellants were availing entire service tax paid on the input services without reversing any proportionate Cenvat credit amount with regard to the trading turn-over. It further appeared to Revenue that Cenvat credit of service tax paid on the services which were attributable to trading of goods were not admissible to the appellants u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion of exempted services and that there were no provision for availing credit of service tax paid on input services which not used or utilized either or in relation to manufacture of excisable goods or for providing output service and that credit of service tax paid on input services used for trading activity was not allowed as the said trading activity could not be considered as an activity amounting to manufacture or provision of service. Therefore, total Cenvat credit availed during the relevant period of service tax paid on input services was divided into two components on the basis of turnover of services on which service tax was chargeable and turnover of trading activity and that quantum of input service credit which was representin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and Service Tax, Noida reported at 2017-TIOI-1316-TCESTAT-ALL. He further, submitted that this Tribunal had allowed appeal in similar circumstances, where facts of the case were similar and reliance for issue of show cause notice in both the cases was on case law in the case of M/s Orion Appliances Ltd. (supra) and M/s Metro Shoes Pvt. Ltd. (supra) and in both the show cause notices the total Cenvat credit availed was divided into two components on the basis of turnover. He has further submitted that in both the cases Revenue did not contend that the Cenvat credit of Service Tax paid as input service was not admissible to appellants. 4. Heard the learned A.R. for revenue, who has agreed that the issue is covered by this Tribunal's sai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th interest shall be recovered from the manufacturer or the provider of the output service and provisions of Section 11A of Central Excise Act. 1944 & Section 73 of Finance Act, 1994 was applied for effecting such recoveries. It is very clear that for recovery of Cenvat credit under said Rule 14 first it is to be established that Cenvat credit has been either taken wrongly or utilized wrongly. Further, the said Rule 14 has also been provided for recovery of amount mentions in Sub-rule (3) of Rule 6 of Cenvat Credit Rules under Explanation 2 under Sub-rule 3 of said Rule 6. The provision at Explanation 2 under Sub-rule (3) of said Rule 6 provide for recovery of Cenvat Credit which admissible at the time of taking credit. In order to invoke p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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