TMI Blog2018 (11) TMI 230X X X X Extracts X X X X X X X X Extracts X X X X ..... d to clause 2(e) of the Cenvat Credit Rules 2004 are mere clarificatory in nature since definition of service as contained in 65B(44) and exempted service in 66D are to be read conjointly and not in exclusion of each other - sale of goods-be it made in the high sea or within the territorial boundary of India in which Finance Act, 1994 has its force, cannot be called a service to impose tax liability or deny the credit under Rule 6 of Cenvat Credit Rules. Extended period and penalty - Held that:- Respondent has not brought forth any cogent evidence on record to establish the charge of wilful suppression by the appellant company to invoke extended period of service so as to justify penalty. Appeal allowed - decided in favor of appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al invoices for landing cost to compute Sales Tax formality only invoices were raised and it did not derive any profit out of such sales/trading activity and they have been paying Central Excise duty on the clearance of finalised product even on behalf M/s Cipla Ltd. which they carried out on job work basis. Further, he submitted that buying and selling of raw-material in relation to manufacture of excisable goods is not tantamount to trading and appellant is a manufacturer who is not engaged in any activity that can be treated as trader, but, the impugned order passed by the Commissioner (Appeals) had disregarded the judicial ruling prevalent on the point. It has also challenged invocation of extended period of limitation on the ground tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed CENVAT credit on common input services and engaged in both the manufacturing of dutiable goods and trading of its raw-material which is fully exempted product, duty liability including interest and penalty on the appellant was not in conformity to the Indirect Tax Rule and therefore, interference by the Tribunal is uncalled for. 5. Heard at length from both sides and perused the case records and provisions of law including definition of trade and the purpose of Audit. 5.1 Dispute relating to taxability on sale and levy of duty by the excise authority is not new in its origin and on many scores, matter had reached the apex court level that necessitated passing of the Constitution (Forty Sixth Amendment) Act, 1982 and going by its St ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in exclusion of each other. This being the statutory definition, sale of goods-be it made in the high sea or within the territorial boundary of India in which Finance Act, 1994 has its force, cannot be called a service to impose tax liability or deny the credit under Rule 6 of Cenvat Credit Rules. 7. Now coming to the statutory audit procedure, the purpose of audit, as available in the Manual published by the Institute of Chartered Accountants of India in respect of EA audit and CERA audit under Chapter 17 is that the idea behind such conduct of verification is to reasonably ensure that no amount, which under the central excise law is chargeable as duty, escapes taxation and the process of verification is always carried out in the presen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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