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TMI Blog2015 (2) TMI 389X X X X Extracts X X X X X X X X Extracts X X X X ..... ctivity of trading- Penalty u/s 78 - Held that:- appellant is not entitled to take Cenvat credit of the common services used by them attributable to trading activity. - the appellant is not entitled to take Cenvat credit to the tune of 17,718/- attributable to trading activity. Further, I find that the appellant were under bonafide belief that prior to 1.4.2011, trading activity was not an exempte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant and audit objections were raised on 14.9.2010. As per audit objection that appellant has taken inputs service credit on common services which were used by the appellant in trading as well as providing output service to the tune of ₹ 4,10,320/- for which appellant is not entitled to Cenvat credit. Therefore, a show cause notice was issued on 5.10.2010 to deny input service credit fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied in proportion as held by this Tribunal in the case of Orion Appliances Ltd. vs. CST, Ahmedabad [2010 (19) STR 205 (Tri-Ahmd)]. Therefore the proportionate credit is denied for Cenvat credit attributable to trading activity works out only to ₹ 17,718/-. Therefore, he prayed that impugned order is required to be set aside for confirming the entire demand of Service tax of ₹ 4,10.320/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the common services used by them attributable to trading activity. Annexure B of the show cause notice works out the quantum of trading activity and the total Cenvat credit taken by the appellant. Annexure B is reproduced hereinbelow:- 7. Further, I have gone through the audit objection. In the audit objection, the amount involved for denial of input service credit is to the tune of ₹ 2,03 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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