2013 (12) TMI 205

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.....M. Ravi Rajendran, DR, for the Respondent. ORDER These applications seek waiver of pre-deposit and stay of recovery in respect of duty and penalty amounts demanded by the lower authorities. In one of the appeals, the demand of duty is Rs. 3,34,869/- and, in the other appeal, the demand of duty is Rs. 10,30,025/-. Both the demands arise out of denial of Cenvat credit on certain services whic....

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....there is no recovery mechanism for recovery of Cenvat credit availed on any common input service used in relation to trading activity and, therefore, the demands under challenge are not enforceable. Learned counsel has, in this connection, claimed support from the decision of this Tribunal in Metro Shoes Pvt. Ltd. v. C.C.E., Mumbai - 2008 (10) S.T.R. 382 (Tri.-Mumbai) wherein it was held that the ....

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....issions, we are of the view that the impugned demand is not supported by any legal provision. In each case, the amount of duty is found to have been estimated on the basis of a formula based on turnover of manufacturing activity and trading activity. It has been assumed that 40% of the Cenvat credit on common input services has been utilized for trading activity. The demand is based on this formul....