TMI Blog2018 (8) TMI 1502X X X X Extracts X X X X X X X X Extracts X X X X ..... and manufacturing activity in the premises. In the case in hand it is not the allegation of the Revenue that respondents have procured manganese ore for stocking and subsequent resale - there is not a single line of finding by the original adjudicating authority as to whether clearances of manganese ore as such amounted to trading activity or rendering of any services. If the clearances of inputs as such is allowed under the provisions of Rule 3 of the CENVAT Credit Rules subject to the condition mentioned therein, the clearances effected by the respondent of the excess raw materials procured cannot be termed as trading activity. Appeal dismissed - decided against Revenue. - E/30200/2018-SM - A/30774/2018 - Dated:- 26-7-2018 - Mr. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after following due process of law set aside the order-in-original and allowed the appeal. 3. The learned A.R. after taking the Bench through the case records submits that the respondent imported manganese ore and a part of which was consumed by them in the manufacture and a part of that was cleared outside on which. they covered profit. It is his submission that the clearances were made by the respondent herein as a trading activity and having availed CENVAT credit on various common inputs and input services, not maintaining separate accounts, is liable to pay 5%/6% of the value of such trading activity undertaken. The Tribunal in the case of Indian Furniture Products Ltd vs CCE Chennai [2010(250)ELT 38 (Tri-Che)] has held that CENVAT c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces which are used for the manufacturing activity; sold manganese ore to various customers and accrued profit on such sale. The adjudicating authority has considered this sale as a trading activity as well. The 1 st Appellate Authority has upheld the contention of the respondent that this is not a trading activity. 6. It can be seen from the impugned order that the 1 st Appellate Authority has considered the entire issue from the correct perspective in as much he has come to a conclusion that availment of CENVAT credit on the inputs and the input services is correctly taken and the provisions of Rule 3 of the CENVAT Credit Rules make provision of clearing the inputs as such by reversing the CENVAT credit availed on them. I find that th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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