9911796707
TMI Blog2018 (8) TMI 1502X X X X Extracts X X X X X X X X Extracts X X X X ..... clearing the same on payment of appropriate duty. During the period 2011-12 to 2013-14, it was alleged in the show-cause notice that respondents had engaged himself in a trading activity which is an exempted service and was availing the CENVAT credit on inputs and having rendered a trading activity services is required to pay an amount equivalent to 6% of the duty amount attributable to value of trading activity for the relevant period in question. Show-cause notice also sought interest and also proposed penalties. Appellant contested the show-cause notice on merits submitting that there was no trading activity undertaken by them and the income shown in the balance-sheet out of sale of raw materials is in respect of raw material which was n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion that the impugned order may be set aside and the appeal may be allowed. 4. Learned consultant appearing for the respondent submits that the facts are not disputed. It is his submission that out of the quantity of manganese imported by the respondent they consumed most of it but could not consume some part and have sold those to different customers on payment of appropriate taxes under the statutory provisions which is considered by the Revenue as trading activity. He would draw my attention to the phrase "trading activity" requires basically trading of the goods and the activity of selling excess raw material would not fall under the category of trading as the said raw material manganese ore was procured by the respondent for consumpti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its definition and the common parlance would mean that purchasing stocking, storing and reselling the goods subsequently. In the case in hand it is not the allegation of the Revenue that respondents have procured manganese ore for stocking and subsequent resale. I agree with the findings recorded by the 1st Appellate Authority that 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 c ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
