TMI Blog2018 (11) TMI 1199X X X X Extracts X X X X X X X X Extracts X X X X ..... clearing them on the payment of duty. Credit allowed - appeal allowed - decided in favor of appellant. - Appeal No.: E/40817/2018 - Final Order No. 42509/2018 - Dated:- 30-8-2018 - Shri P Dinesha, Member (Judicial) Ms. D. Naveena, Advocate for the Appellant Shri. R. Subramaniyan, AC (AR) for the Respondent ORDER The appellants are manufacturers of gears, gear assembly and accessories and have availed CENVAT Credit of service tax paid on common input services during the period from 2011-12 to 2014-15. They also removed inputs such as spares to their customers on payment of duty on a value higher than the cost price. It was alleged that the said activity tantamounts to trading and that the appellants were not eli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsidering the rival contentions has, in Final Order No. 41747/2018 dated 06.06.2018, ruled as under: 5. It is seen from the submission made by both sides as well as the records that the appellants have reversed the credit, as under Rule 3(5), when they have cleared the goods as such. In a normal trading activity, the goods which are procured, are sold and there is no question of availing the credit of such goods or clearing them on the payment of duty. In the present case, the appellant has availed credit on the inputs and, in some circumstances, they were not able to use the goods in the manufacture of final products. They have opted to clear the goods as such, under the provision of Rule 3(5) by reversing the credit. The Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s sold to their vendor. There is no dispute that the said removal is governed by Rule 3(5) of the Cenvat Credit Rules, 2004. It is admitted fact that the appellant has cleared the said steel sheets on payment of duty. The department is considering the 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 duty. Then only such trading will be considered as exempted service. In the present case, removal of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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