2017 (10) TMI 650

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..... the purpose of breaking. The appellants are breaking the ship and as a result certain items are recovered. The scrap so generated is sold by appellants on payment of central excise duty. Other items generated are sold by them as it is. The items in respect of which demands for revenue under Rule 6 of Cenvat Credit Rules have been made are not purchased by appellants but are part of the ship when .....

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..... edit of inputs services namely renting of immovable property services, security services, manpower recruitment service and the credit was utilised for discharge of duty on dutiable goods manufactured by the appellants. Revenue demanded reversal of cenvat credit under Rule 6 in respect of the items like motors, generator, engine, remnant oil etc., considering the same as exempted/ non-excisable goo .....

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..... trading cannot be upheld. 3. I have gone through the rival arguments. I find that demand has been raised holding the activity of selling motors, generator, engine, remnant oil etc as trading. Rule 6 has been applied to demand reversal of cenvat credit on input services. It is seen that what the appellants are purchasing is a ship for the purpose of breaking. The appellants are breaking the shi .....

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