2021 (8) TMI 907

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..... e relates to Chennai factory. Apart from the registration of the premises at Chennai as factory, it is also registered as a depot. The lube oil manufactured at other places are stock transferred to the Chennai premises and sold as depot sale. The appellant availed CENVAT credit on inputs, input services and capital goods used in manufacture of these final products. The present dispute pertains to the credit availed on input services. Show Cause Notice was issued to the appellant alleging that the appellant has to reverse the credit availed on input services used for carrying out trading of lube oil in the factory premises at Chennai in terms of Rule 6(3) of CENVAT Credit Rules, 2004. 2. The ld. Consultant Shri Baratwaj appeared and argued .....

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..... ot appealed against an order and the principle laid down in the order has been accepted by the department, the issue has to be held as having attained finality and the department cannot take a different stand. 4. The ld. AR Smt. T. Sridevi appeared for the department. She supported the findings in the impugned order. 5. Heard both sides. 6. It was noticed by the department that the appellant had availed CENVAT credit on various input services based on the invoices issued by the service provider as well as on the basis of ISD invoices issued by their regional and head office. The department entertained a view that as the appellants were carrying out trading in the factory premises where from the lube oil received from other factories were .....

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..... ase that the depot at Chennai is engaged in buying from any external agencies for subsequent sale. It is undisputed fact that the depot is only receiving the manufactured goods of Chennai Lube Plant and also from their sister units at Silvaasa, Mumbai, Mazagaon etc. though stock transfer advice along with cenvat documents for sale / distribution to dealers, depots and direct consumers. In my considered view, it is wrong to conclude that such activities normally carried out by a depot tantamounts to trading to get covered as an exempted service. Hence going by the factual details of the operations carried out by the depot, not disputed or countered by the respondent in the impugned order, I deem it fit to concede the appeal to the appellant .....

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