9911796707
TMI Blog2018 (10) TMI 167X X X X Extracts X X X X X X X X Extracts X X X X ..... missioning or Installation Service. The assessee also engaged in the business of trading of telecom equipments. During the course of scrutiny of records of the assessee, the officers of Audit Wing of the department observed that during the period from 2007-08 to2011-12, the assessee had availed common input services such as courier service, Custom House Agent Service, telephone service, transport of goods service for providing the taxable output services as well as for trading activities undertaken by it. Since the assessee did not maintain separate records for receipt and use of input services in respect of output taxable services provided by it and did not pay the amount as provided under sub-rule (3) of Rule 6 of the Cenvat Credit Rules, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the Cenvat benefit, in terms of provisions of Rule 3 read with Rule 4 of the Cenvat Rules. 3. None appeared for the assessee. Heard learned D. R appearing for Revenue and perused the records. 4. We find that the learned Commissioner vide impugned order dated 28.11.2014 has held that in respect of input services used by the assessee for trading activity, no CENVAT Credit is admissible. Such finding is in conformity with Cenvat statute inasmuch as the statute provides for availment of credit on input services, for utilization towards payment of service tax only for providing the taxable output services. 5. On perusal of both the pre-amended and post amended definition of exempted service contained in Rule 2(e), we find that there is n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it by the appellant. Since upon acquiring the knowledge regarding availment of irregular CENVAT Credit, the department initiated show cause proceedings against the assessee, we are of the view that such proceedings are not barred by limitation of time. Further, the assessee being a service provider, was only entitled to take CENVAT Credit of service tax paid on input services, which were used / utilized for providing the output service. Since trading is not at all a taxable service as per the definition under the Finance Act, 1994, there was no occasion for availment of credit for such trading activity. Since the appellant had availed irregular CENVAT Credit on the input services used for trading activity, the intention of the assessee is m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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