9911796707
TMI Blog2022 (3) TMI 696X X X X Extracts X X X X X X X X Extracts X X X X ..... ansportation of natural gas through pipeline on which service tax is paid (ii) Manufactured CNG gas from natural gas received from M/s Gujarat State Petroleum Corporation Ltd. and paid appropriate central excise duty on the same (iii) Purchased PNG from M/s Gujrat State Petroleum Corporation Ltd and sold it to its customers i.e trading activity on which no service tax is paid. As regard the trading activity specific amendment was made in the Cenvat Credit Rules, w.e.f. 1.4.2011 as per Notification No. 3/2011-C.E. (N.T.), dated 01.03.2011 wherein, the trading activity was incorporated in the definition of exempted services accordingly Rule (6) became applicable but it is only from 1.4.2011, prior to that there was no provision for either den ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... very of ₹ 7,22,203/- short paid in the month March 2007 along with interest under Section 75 of the Act. He also imposed penalty under Section 76 of the Finance Act and under Rule 15(3) of Cenvat Credit Rules 2004. 1.1 The fact of the case is that the appellant during the relevant period engaged in three activities: (i) they transported the natural gas through pipeline to Customers of Gujarat State Petroleum Corporation Ltd. (GSPCL) viz, M/s Arvind Mills, M/s. Arvind Intex etc. and paid service tax on the same under the category of transportation of goods through pipeline . (ii) They Manufactured CNG from Natural Gas procured from GSPCL and paid appropriate Central Excise duty of the same (iii) Purchased the PNG from GSPCL which was t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce and trading of goods. In the present case common input service viz. transfer of gas through pipeline from GSPL has been used for proving taxable service, manufacturing activity and trading activity, Therefor ratio laid down in the above decisions regarding eligibility of Cenvat Credit on common input services used for trading of goods is required to be followed in the present case. Trading activity was neither exempted goods nor exempted service during the disputed period 2006-07. Rule 2(e) of Cenvat Credit Rules, 2004 was amended w.e.f. 01.04.2011 by Notification No. 3/2011-CE(NT) dtd. 01.03.2011 whereby trading activity was specifically included in definition of exempted service. Therefore, trading activity was not exempted service pri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervices were not used for providing of output services, the Cenvat credit used in such activity was denied. We observe that during the relevant period Appellant carried out three activities: (i) Providing Services of transportation of natural gas through pipeline on which service tax is paid (ii) Manufactured CNG gas from natural gas received from M/s Gujarat State Petroleum Corporation Ltd. and paid appropriate central excise duty on the same (iii) Purchased PNG from M/s Gujrat State Petroleum Corporation Ltd and sold it to its customers i.e trading activity on which no service tax is paid. We find that as regard the trading activity specific amendment was made in the Cenvat Credit Rules, w.e.f. 1.4.2011 as per Notification No. 3/2011-C.E. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s (supra). In the case of Badrika Motors Pvt. Ltd. (supra) the Cenvat credit was denied on the GTA service on the ground that the GTA service has no nexus with the taxable service such as Authorized Service Station and Business Auxiliary Service . This Tribunal has held that no arithmetical correlation is required between the input and output services and accordingly the credit was allowed. In the case of Shariff Motors (supra) similar facts were involved that the assessee had availed the Cenvat credit in respect of GTA service which is used for transportation of motor cycles from factory to show room which were sold as such and credit was utilized for payment of Service Tax under authorized service station. The Division Bench has allowed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the view that the learned Tribunal has given correct interpretation and this is one possible interpretation and we cannot substitute by another one. Thus, we do not find any element of law involved for admission of this appeal. Accordingly, the appeal is dismissed. No order as to costs. In view of the settled position of law as discussed above, we find no merit in the impugned order in so far it confirms the Cenvat demand against the appellant. 4.1 As far as short payment of service tax of ₹ 7,22,203/ in the month of March 2007 and Service tax Credit of ₹ 21,99,492/- wrongly utilized in excess of availability during the period April 2006 to October 2006 is concerned, the Learned Counsel has submitted that the said liability ..... X X X X Extracts X X X X X X X X Extracts X X X X
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