9911796707
TMI Blog2017 (11) TMI 1449X X X X Extracts X X X X X X X X Extracts X X X X ..... s like security service, banking, auditing, etc. Proceedings were initiated against the appellants as they have availed and utilised cenvat credit on input services in violation of the provisions of Rule 3 and Rule 9(6) of Cenvat Credit Rules, 2004 inasmuch as the said credits were not available when used in relation to the trading activities. The proceedings were concluded in the impugned order. The Original Authority confirmed a demand of Rs. 51,66,116/- along with penalty of Rs. 10,000/- under Rule 15(3) of the CCR 2004. 2. Contesting the above order, the ld. Counsel for the appellants submitted that Rule 6 of CCR of 2004 has no application to the present case. Trading activity is not a declared exempted service prior to 01.04.2011. As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anner of usage of such common input services in taxable activity as well as non-taxable activity. Their contention is that trading cannot be considered as an exempted service prior to 1.4.2011 [(before issue of notification no.3/2011-CE (NT)] and as such, there is no application of Rule 6 of CCR for maintenance of separate records etc. We are not in agreement with such proposition. Admittedly, it is the responsibility of the assessee to follow the provisions of Cenvat Credit Rules, 2004. Rule 9(6) of the CCR Rules states as below:- "Rule 9 (6) The manufacturer of final products or the provider of output service shall maintain proper records for the receipt and consumption of the input services in which the relevant information regarding th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is a bonafide interpretation error and as such, the extended period is not justifiable. We note that till the fiction was introduced stating trading is an exempted service, by "Explanation" introduced w.e.f. 1.4.2011 in the Cenvat Credit Rules, 2004, trading, which is a sale of goods, could not have been considered as a taxable service or an exempted service. The input services, on which credit was availed by the appellant, were consumed for trading activities and such credit could not have been availed or taken for discharging service tax on the services provided by the assessee. As held by the Tribunal in the case of HCL Infosystem Limited reported in 2014 (4) ECS (160) (Tribunal-Delhi), there is no scope for any interpretational miscon ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
