2009 (7) TMI 223 - AT - Service Tax

Duty of Rs. 43,801/- stands confirmed against the appellants by denying them the benefit of modvat credit on input services used in or in relation to jointly for trading activities as well as for repairing and maintenance activities - appellant s only contention is that the trading activities cannot be held to be an exempted activity, so as to require the assessee to maintain separate modvat account, in terms of Rule 6 of Cenvat Credit Rules Revenue contend that trading activities are not liable to service tax and as such, any input service used in or in relation to said activity, would not be ineligible input service - prima facie force in the contention of revenue stay not granted

Summary

The Appellate Tribunal CESTAT, Ahmedabad confirmed duty of Rs. 43,801 against the appellants for denying modvat credit on input services used in trading and maintenance activities. The appellants argued that trading activities are not exempted, but the SDR contended that input services for trading are ineligible for modvat credit. The Tribunal directed the appellants to deposit the duty amount within 6 weeks.