2023 (10) TMI 676

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..... l holding that the trading activity is neither an output service nor a manufactured product liable to central excise duty, therefore, cenvat credit availed in respect of Trading Activity can be denied. Since rule 6(5) of the Cenvat Credit Rules, 2004 excludes the credit availed on Management Consultancy Service from the application of Rule 6(1), 6(2) and 6(3) of the Cenvat Credit Rules, 2004, no reversal of cenvat credit is required. The impugned order cannot be sustained. The appeal is allowed. - MR. RAMESH NAIR, MEMBER (JUDICIAL) AND MR. RAJU , MEMBER (TECHNICAL), Shri Rajan Mishra, Advocate appeared for the Appellant Shri Tara Prakash, Deputy Commissioner (Authorized Representative) for the Respondent ORDER .....

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..... 6(5) read as follows: Notwithstanding anything contained in sub-rules (1),(2) and (3), credit of whole of Service tax paid on taxable service as specified in sub-clause (g), (p), (q), (r), (v), (w), (za), (zm). (zp), (zy), (zzd), (zzg), (zzh), (zzi), (zzk), (zzq) and (zzr) of clause (105) of Section 65 of the Finance Act shall be allowed unless such service is used exclusively in or in relation tothe manufacture of exempted goods or providing exempted services. 3. Learned Authorized Representative relies on the impugned order. 4. We have considered the rival submissions. We find that the appellants have availed cenvat credit in respect of Management Consultancy Service obtaining from foreign entity. The appellant had paid the .....

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..... perusal of the impugned order shows that the Commissioner has relied on certain decisions of Tribunal holding that the trading activity is neither an output service nor a manufactured product liable to central excise duty, therefore, cenvat credit availed in respect of Trading Activity can be denied. Rule 6(1), Rule 6(2) and Rule 6(3) of Cenvat Credit Rules, 2004 reads as follows: As per Rule 6(1) of the Cenvat Credit Rules, 2004, the CENVAT credit shall not be allowed on such quantity of input service which is used for provision of exempted services, except in the circumstances mentioned in Sub-Rule (2). Rule 6(2) speaks about maintenance of separate accounts for input service meant for use in providing output service and to take CE .....

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