2017 (6) TMI 513

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....a 1. Revenue is in Appeal against Order in Appeal no.15/2013 dated 15/01/2013 whereunder the demand and recovery of Cenvat credit amounting to Rs. 17,13,309/- along with penalties has been dropped. 2. Brief facts are that : i. Respondent, M/s C I Finlease Ltd is a holder of service tax registration for providing services of authorized service station and business auxiliary service. ii.....

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....that is sale of motor vehicles cannot be allowed. v. The appellant failed to maintain separate accounts of Cenvat credit utilized for exempted services (trading activity) and taxable services (authorized service station service). Therefore, department issued a show cause notice for disallowing and recovery of Cenvat credit amounting to Rs. 7,13,309/- pertaining to trading activities of the appe....

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....case and the submissions of both the sides, it appears that during the relevant period Cenvat credit for the input services utilized for taxable and exempted services was admissible as per provisions of rule 6(5) of Cenvat Credit Rules, 2004, which was deleted by Notification no.3/2011-CN (NT) dated 01/03/2011 with effect from 01/04/2011. When the period involved is from 2005-06 to 2009-10, there ....

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....ntioned the trading activities in ST-3 returns under exempted category but that trading is an exempted service was clarified by an amendment to the Act only with effect from 01.04.2011. Further, several of the services in respect of which the credit is sought to be denied were those covered under sub-Rule (5) of Rule 6 of CENVAT Credit Rules. In these circumstances, the appellants have been able t....