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TMI Blog2018 (11) TMI 1223X X X X Extracts X X X X X X X X Extracts X X X X ..... d goods and trading activity. The traded goods cannot be considered as an exempted goods whereas the trading activity as per Rule 2(e) of CENVAT Credit Rules, 2004 is an exempted service. The appellants do not have a case that they have maintained separate accounts with regard to the common input service used for trading and manufacturing activity - the demand raised is legal and proper and requir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Belts, Conveyor Belts, Timing Belts etc. They were also engaged in trading of goods. During the verification of accounts, it was noticed that they had availed CENVAT credit on common input services which were consumed for carrying out the activity of manufacturing dutiable goods and also for trading activity which are exempted services with effect from 1.4.2011. They had not maintained separate a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and they were buying and selling raw materials namely Furan Resins, Curing Agents, Strip Cote etc. which were imported. They were maintaining separate accounts of the traded goods and therefore the demand cannot sustain. The ld. consultant also argued that the adjudicating authority has no jurisdiction to adjudicate the show cause notice for the reason that the show cause notice has been issued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted the Central Excise officers of all ranks in the Audit Commissionerate shall be have powers to adjudicate show cause notices. Thus, we do not find that the adjudication made by the Assistant Commissioner is without jurisdiction. 5.1 The major part of the argument put forward by the ld. consultant is with regard to the import of the goods; that they have maintained separate accounts with rega ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and requires no interference. 5.2 However, we find that the appellant has been maintaining register with regard to the traded goods on the bonafide belief that they are maintaining separate accounts as provided under Rule 6(2) of CENVAT Credit Rules, 2004 and has not availed credit on such goods. Taking into consideration these aspects, we are of the view that the penalty imposed is unwarrante ..... X X X X Extracts X X X X X X X X Extracts X X X X
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