9911796707
TMI Blog2024 (12) TMI 1358X X X X Extracts X X X X X X X X Extracts X X X X ..... nate Benches. Since the appellants had bonafide belief that exempted service should not be considered as trading activity for the period prior to 01.04.2011, not entering the CENVAT particulars in the ER-1 return, even though reflected in the internal records, would not call for invocation of the extended period of limitation. In such circumstances, the show-cause notice was required to be issued within the normal period of one year i.e., from the date of taking the CENVAT Credit of the disputed service. Since the show-cause notices were issued beyond the normal period of one year, in our considered view, the same are barred by limitation of time insofar as proceedings were initiated for recovery of wrong availment of CENVAT Credit for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in the manufacture of Motor Vehicles, falling under Chapter 87 of the Central Excise Tariff Act, 1985. For catering to the requirements of spare parts market in respect of motor vehicles manufactured by them, the appellants had established the warehouses at Kanhe, Pune. In the Kanhe unit, the appellants receive parts and components from their manufacturing unit. Thereafter, the appellants undertake packing/repacking of such parts components and subsequently, sell the same to the authorized dealers/stockists on payment of Central Excise duty. The appellants also receive parts and components in packed form, from their other manufacturing unit located at Uttaranchal, which are availing the area based exemption , in terms of Notification No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11.03.2013 and 05.05.2014. Feeling aggrieved with the impugned order dated 22.09.2014, the appellants have preferred these appeals before the Tribunal. 2. Learned Advocate appearing for the appellants submitted that the appellants are not involved in any trading activity inasmuch as supply of goods from the Uttranchal unit to their Pune unit cannot be termed as purchase of goods and as such, mere sale of these goods cannot alter the transaction to consider the same as trading activity, in order to fall within the scope and ambit of Rule 2(e) of the Rules of 2004. He further submitted that for the period April, 2009 to March, 2011, trading was not specifically defined as an exempted service and thus, the appellants were not required to compl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 05.05.2014, seeking for confirmation of the demands in respect of the said period. The appellants in the present appeals have pleaded that the activity of trading was not an exempted service prior to 01.04.2011 and there were divergent views with regard to such activity, whether to be considered as exempted service or otherwise . Therefore, they have pleaded that though the CENVAT credit availed on the basis of ISD invoices were reflected in the books of account, but the said particulars were not captured in the periodical returns i.e., ER- 1 filed before the jurisdictional Central Excise authorities. The appellants have also pleaded that the show-cause notices dated 11.03.2014 and 05.05.2014 issued by the Department, alleging recovery of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dit for the period upto31.03.2011. 6. The appellants have contended that the CENVAT Credit for the period after 01.04.2011 at the ISD level had already been reversed by their Head Office and as such, it cannot be construed that CENVAT credit on the disputed input services was distributed to the manufacturing unit located at Pune. However, on perusal of the case records, we find that the learned adjudicating authority has not specifically discussed about this aspect of reversal of CENVAT Credit at the ISD stage, as claimed by the appellants. Therefore, we are of the view that the matter should go back to the original authority for ascertaining the fact as to whether, the appellants had reversed the common input services at the time of issuan ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
