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TMI Blog2012 (9) TMI 811X X X X Extracts X X X X X X X X Extracts X X X X ..... tment for payment of service tax in relation to services provided by them under servicing of motor vehicles and business auxiliary services. On the ground that appellant had taken CENVAT credit on several services, which according to the revenue related to the sale of motor vehicles and not to the services provided by them. CENVAT credit was proposed to be denied on various input services such as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he relies upon the decision of this Tribunal in the case of Orion Appliances Ltd. v. CST [2010] 27 STT 319 (Ahd - CESTAT) to submit that trading is not a service and therefore, the services which are attributable to trading activity cannot be treated as input services. 3. The learned Chartered Accountant on behalf of the respondent relies upon the decision of the Tribunal in the case of CCE v. Sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therefore utilization of service tax credit is in order Further, he also submits that the extended period could not have been invoked and penalty could not have been imposed in this case since it is an output service. 4. I have considered the submissions made by both sides. I find that the decision of the Tribunal in the case of Shariff Motors is clearly applicable to the facts of this case in r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng or the trading activity. Similar would be the case in respect of hotel expenses also. In both these case, it is quite possible that amount may become admissible if it is attributable to the activity on which service tax was paid and otherwise if it was attributable to trading activity, clearly as an exempted service or a non-service. Since the respondent has fairly agreed to forego the benefit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facts and circumstances of this case, there will be no penalty on the respondents. It is made clear that as regards subsequent period, credit of service tax in relation to advertisement services and hotel expenses would be admissible only if it is clearly shown as relatable to the activity of authorized service station or business auxiliary services undertaken by the respondents. Appeal filed by t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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