2014 (12) TMI 364

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....being the ineligible amount of credit taken in respect of trading activities. IN addition, interest thereon has also been confirmed apart from imposing a penalty of Rs. 1,07,06,964/-. Aggrieved of the same the appellant is before us. 3. The learned counsel for the appellant submits that there is a computation error committed by the adjudicating authority in the impugned order while confirming the duty demand. Out of the total amount of credit denied, an amount of Rs. 1.26 crore has been denied twice. This pertains to the credit availed on the retail agent's commission in respect of the goods manufactured by the appellant by the appellant and therefore, this demand is not sustainable. The learned counsel also submits that the appellan....

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....facturing activity as well as trading activity and the period of demand pertains to January 2008 to March 2011. During this period trading was not considered as a service at all and it was also not a taxable service. Inasmuch as trading is not a service, the appellant could not have availed any service tax credit on such services availed in respect of trading activities whether exclusively or commonly. Therefore, the denial of service tax credit to the appellant on a proportionate basis in respect of the trading activity is clearly sustainable in law and accordingly, he pleads for putting the appellant to terms. 5. We have carefully considered the submissions made by both the sides. After going through the details furnished by the appell....