TMI Blog2017 (9) TMI 891X X X X Extracts X X X X X X X X Extracts X X X X ..... itation was rightly rejected by the Authorities below - credit not allowed - appeal dismissed - decided against appellant. - ST/30618 & 30759/2016 - A/31310-31311/2017 - Dated:- 30-8-2017 - Mr. M.V. Ravindran, Member (Judicial) Sh. M.S. Nagaraj, Advocate Sh. Venkat Prasad, Chartered Accountant for the Assessee. Sh. M. Chandra Bose, Additional Joint Commissioner (AR) for the Department. ORDER [Order per: M.V. Ravindran] These appeals are directed against Order in Appeal NoHYD-SVTAX-000-APP-0018-16-17 ST dated 25.04.2016. 2 Heard both sides and perused the records. 3. The brief facts of the case, are that the appellant is a registered service provider under Servicing of Motor Vehicles (SMV) and Busine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ating in the instant appeal, wherein the demand was confirmed to the extent proposed, along with interest, and a penalty of ₹ 44,58,731 imposed under Sec 78, with option of reduced penalty if paid within the prescribed time limit. The lower authority held inter alia that trading activity was considered as an exempt service even before the insertion of the explanation under Rule 2(e) of the CCR 2004; that the Board clarification at Sl. No.7 of Circular No.943/04/2011-CX [F No.354/73/2011-TRU] clarified the legislative intent; that the ratio of the rulings cited at Para 20 and 22 of the impugned order applied; that the impugned input services were not covered under Rule 6(5); that the facts were suppressed and not disclosed in their per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the activity of trading to be considered as exempted service for the period prior to 01.04.2011 even the though the same has been identified as an exempted activity only from 01.04.2011? 2. The appellant is engaged in the manufacturing of parts of pre-heater and clearing the same to Dalmia Cement (B) Ltd., Dalmiapuram on payment of excise duty. The goods were supplied on the basis of the contract entered into between the appellant and Dalmia Cement (B) Ltd. for the supply of parts of pre-heaters used in the cement industry and the contract was for ₹ 41.45 crores. It is the case of the Department that out of the contract valued at ₹ 41.45 crores, the appellant manufactured and supplied the goods to the value of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... procuring orders by M/s. Adhunik Corporation cannot be utilised by the appellant for taking credit for the goods not manufactured as a final product and cleared from the appellant's manufacturing unit. 10. On an understanding of the above provision, namely, Rule 2(1) of the Cenvat Credit Rules, there is no manner of doubt that input service Incans goods which is used by the manufacturer directly or indirectly in relation to the manufacturing of final product and clearance of final product from the place of removal. In the present case, the Department has allowed cenvat credit in respect of the value of goods amounting to ₹ 5.41 crores and denied for the balance. We find no error in such determination, which is in consonance w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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