TMI Blog2018 (5) TMI 208X X X X Extracts X X X X X X X X Extracts X X X X ..... ets is indeed a trading activity, but the said clearances were made on payment of excise duty. Therefore, it cannot be considered as an exempted service - Rule 6 applies on the trading activity only in a case when the goods are purchased and sold without taking credit and without payment of duty. In the present case, the removal of input under Rule 3(5) was made admittedly on payment of duty - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le basis. The vendor availed the credit of the duty so paid by the appellant and after manufacturing of the component, the same is returned back to the appellant on payment of duty on sale basis. The appellant in turn availed the credit of the said manufactured component and thereafter used in the manufacture of their sub-assembly and the said sub-assembly is cleared on payment of duty. The case o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and accordingly the demand is not sustainable. He placed reliance on the following judgments:- (i) CCE, Ahmedabad-II vs. Inductotherm (I) Pvt. Ltd. 2013 (1) ECS (26) (Guj-HC); (ii) AR Casting (P) Ltd. vs. CCE ST, Chandigarh (Service Tax Appeal No.580/2008) (Tri.-Delhi); (iii) Chitrakoot Steel and Power Pvt. Ltd. vs. CCE 2008 (125) ECC 188 (Tri.-Chennai). 3. Shri S.J. Sah ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said clearances as exempted service being a trading activity. I find that though this removal of steel sheets is indeed a trading activity, but the said clearances were made on payment of excise duty. Therefore, it cannot be considered as an exempted service. Rule 6 applies on the trading activity only in a case when the goods are purchased and sold without taking credit and without payment of du ..... X X X X Extracts X X X X X X X X Extracts X X X X
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