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TMI Blog2017 (8) TMI 786X X X X Extracts X X X X X X X X Extracts X X X X ..... n manufacture of refined sunflower oil by processing refined crude oil. They are also processing duty paid refined sunflower oil for trading purposes. Such duty paid oil is exempt under Sl. No.244 (c) of Notification No.6/2002-CE dated 1.3.2002 as amended. Thus, refined sunflower oil and the duty paid sunflower oil manufactured by them are taken through pipelines to service tank where the two types of oil get mixed and after filtration are packed in different unit container and sold. The assessee is also engaged in providing clearing and forwarding services for other manufacturers and is registered with the Service Tax Department for this output service. 2. On perusal of records, it was noticed by the department that the assessee used the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... basis of improper documents for which a demand was proposed for a sum of Rs. 2,10,816/- under Rule 14 of CENVAT Credit Rules, 2004. 6. Alleging the above, a Show Cause Notice No. 16/2005 dated 6.4.2005 was issued proposing recovery of the irregularly availed credit along with interest and also for proposing penalties. 7. The assessee was issued a further show cause notice bearing No 19/2005 dated 14.6.2005 alleging wrongful availment of credit of service tax paid on input services namely advertisement services and insurance services for the period from April 2003 to September 2004 proposing to disallow credit to the tune of Rs. 49,00,194/- alleging that advertisement services and insurance services were in no way connected with the outpu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the amount of Rs. 39,09,242/-. He argued that the assessee was discharging output service of clearing and forwarding service for other manufacturers. Service tax was paid on insurance services and advertisement services which are input services used for providing the output services rendered by the assesse. That therefore the assessee has availed the credit rightly. The credit is sought to be denied by the department alleging that assessee being a manufacturer cannot avail the credit upon input services prior to 10.9.2004 that the date on which CENVAT Credit Rules, 2004 came into existence. He explained that prior to 10.9.2004, the output service provider was eligible to avail CENVAT credit on input services under the Service Tax Credit Rul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pugned order, it can be seen that there is no such discussion made by the Commissioner on this point later in the order. The learned AR submitted that since the appellant did not maintain separate accounts, they are not eligible to avail the credit of input services which was availed by them under the erstwhile Rule 6 of Service Tax Credit Rules, 2002. Further, that the advertisement and insurance services have no nexus with the clearing and forwarding agent service undertaken by the appellant. 12. We have heard the submissions made by both sides. 13. On perusal of the impugned order, in the operation portion, the Commissioner has dropped the demand of Rs. 39,09,242/- which pertains to the period June 2003 to 9.9.2004. The department has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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