9911796707
TMI Blog2018 (8) TMI 1448X X X X Extracts X X X X X X X X Extracts X X X X ..... s directly to the customer's site. This prompted the Revenue to consider this activity as a trading activity consequent to which, a show-cause notice dated 07.08.2015 was issued calling upon the assessee as to why amount payable on the value of exempted service in terms of Rule 6(3)(i) of Cenvat Credit Rules 2004 for the year 2010-11 to 2014-15 should not be demanded and recovered, apart from interest and penalty as applicable. The appellant filed its reply seriously objecting to the propositions made in the show-cause notice and seriously contending that the activity of E-1 sales was not trading activity and further submitted that even if they were to be considered as a trading activity,but still, the same was not an exempted service for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there is no liability at all in terms of the very provisions of the Rule, the authority erred in confirming the demand for the first period (supra). 3.3. For the second period i.e. April 2011 to June 2012, the definition of 'exempted service' was amended by including trading activity, but however, in terms of Rule 6, the value of non-excisable goods shall be the invoice/agreement/contract value and where such value is not available, the same to be determined by using reasonable means consistent with the principles of valuation.This was further cleared by the introduction of Rule 6(3)(a) and Rule 6(3A) but with a condition to be exercised at the option of the assessee/manufacturer. 3.4. The contention of the assessee that for this period i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt was much more. 5. Considering the rival contentions and after considering the amended law, I am of the view that for the third period (supra) the situation prevailing during first period (supra) applies and therefore, I hold that as there was no mechanism in the statute to evaluate an exempted service, there is no question of any liability or obligation. 7. I therefore allow the appeal in part in the above terms. This will have the effect of allowing the appeal in full for the first and third periods and for the second period, the AO shall value in accordance with law as indicated above. 8. In the other appeal in E/20698/2016 in the case of individual, I find force in the contentions of the appellant that the appellant in the capacity ..... X X X X Extracts X X X X X X X X Extracts X X X X
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