9911796707
TMI Blog2016 (5) TMI 900X X X X Extracts X X X X X X X X Extracts X X X X ..... able service as well as non taxable activity i.e. Trading Activity. It is found that prior to 31/3/2011 there was no clarity whether the Cenvat credit in respect of services used for trading activity is required to be reversed or otherwise. Trading activity is included in the exempted services w.e.f. 1/4/2011 since then appellant was reversing the credit attributed to the Trading Activity. However for the period before 31/3/2011 appellant paid entire amount alongwith interest. In view of lack of clarity on the inclusion of Trading Activity under exempted service w.e.f. 1/4/2011, the appellant has shown a reasonable cause for non reversal of the Cenvat credit attributed to the trading activity. Therefore the penalty imposed under Section 78 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ither they were suppose to pay an amount equal to 8% or 6% or 5% (as prevailing from time to time) of the value of exempted services as specified in sub rule (3A) of Rule 6 of CCR, 2004. In view of the non observance of the procedure as laid down under Rule 6, show cause notice was issued and same was adjudicated wherein Ld. Commissioner confirmed the demand and imposed penalty therefore appellant is before me. 3. Ms. Gopalan, Ld. C.A. appearing on behalf of the appellant submits that present appeal is only for waiver of penalty imposed under Section 78 and they are not contesting the demand as appellant have paid entire amount alongiwith interest. She submits that prior to 1/4/2011 there was serious confusion whether Cenvat credit attri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reversal of credit was sought by the Revenue on the ground that the appellant is engaged in providing taxable service as well as non taxable activity i.e. Trading Activity. I find that prior to 31/3/2011 there was no clarity whether the Cenvat credit in respect of services used for trading activity is required to be reversed or otherwise. Trading activity is included in the exempted services w.e.f. 1/4/2011 since then appellant was reversing the credit attributed to the Trading Activity. However for the period before 31/3/2011 appellant paid entire amount alongwith interest. In view of lack of clarity on the inclusion of Trading Activity under exempted service w.e.f. 1/4/2011, the appellant has shown a reasonable cause for non reversal of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
