2014 (4) TMI 300

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s at the time of clearance. In respect of clearance to Motor Vehicles Manufactures, Cenvat credit was taken of the duty already paid on tubes and flaps. As regards the tubes and flaps cleared to the appellants in the replacement market, no Cenvat credit of duties paid by the supplier for tubes and flaps was taken by the appellant. Proceedings were initiated on the ground that the appellant should have maintained separate accounts since the sale of tubes and flaps to the dealers in the replacement market amounts to trading and since the appellant did not maintain separate accounts of input services, namely GTA service utilized for tubes and flaps and tyres partly, the appellant is required to pay 5% / 10% of value of tubes and flaps cleared ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the case of the appellant. Further, he also submitted that Revenue has demanded the service tax on the value of traded goods. He submitted that for demanding an amount as contemplated under Rule 6(3) of the Cenvat Credit Rules, 2004, the value of traded goods could not have been taken. 3. On the other hand, learned A.R. relied on the decision of the Tribunal in the case of Metro Shoes Pvt. Ltd. vs. Commissioner of Central Excise, Mumbai-I [2008 (10) S.T.R. 382 (Tri.-Mumbai)] and submitted that the appellant is not eligible for proportionate credit in respect of the services utilized for trading activities. 4. We find that the decision in the case of Metro Shoes Pvt. Ltd. (supra) also is on the same line as in the case of Orion appliances ....