2019 (2) TMI 591

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....also imposed penalty of Rs. 4,93,106/- under Rule 15(3) of CCR read with Section 78 of the Finance Act, 1994. 2. Briefly the facts of the present case are that the appellant is providing repair, reconditioning, restoration and decoration services of any motor vehicles, Business Auxiliary Service and Renting of Immovable Property Service. They are also trading HONDA brand two wheelers and its spare parts. The Department entertained a view that the appellant is engaged in trading of goods which is an exempted activity from service tax as per the Negative List and therefore the CENVAT credit availed by the appellant is incorrect and as per Rule 6 of CCR, the credit availed is to be governed by Rule 6(3). Accordingly a show-cause notice dt. 21....

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....though they are entitled for proportionate credit. He further submitted that the Revenue has considered an isolated case of taking credit on the advertisement expenses during a short spell from 2010-11 which was for the trading division of two wheelers and has generalized the whole issue and has drawn the conclusion that the appellant has taken credit on service used for trading of vehicles during the entire period. He further submitted that the appellants have wrongly taken the credit on advertisement expenses which they are ready to reverse. He further submitted that the Rule 6(3), if at all, is made to be applicable, it can only be for the short period of October 2010 to March 2011 and not from October 2010 to March 2015. He further subm....