2017 (9) TMI 1373

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....6/EB dated 14.10.2016. in the said case, penalty as well as extended period of limitation was upheld. 3. Ld. Counsel for the respondents argued that they are engaged in manufacture as well as trading activity and certain common services are used for the said purpose. She argued that trading activity has been included in the activity of exempted services only from 01.04.2011 and for the period prior to that no reversal of cenvat credit is required in respect of input services attributable to trading activity. She further argued that they have reversed the cenvat credit required along with interest and filed a letter dated 16.03.2011 accepting their liability. She also relied on the decision of Tribunal in the case of Kundan Cars 2016 (43) S....

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....he overall scheme of the things. The overall scheme of CENVAT Credit is with reference to the manufacturing activity or providing of output service. The Cenvat Credit Rules are not with reference to the trading activities. In the present case, the dispute is between the manufacturing activity and that relating to trading activity. We, therefore, out rightly reject the contention of the appellant." In case of Clariant Chemicals, the Tribunal has observed as follows: - "18. Learned counsel for the appellant has submitted that they should be given the benefit of the then Rule 6(5) of the Cenvat Credit Rules, which provides entire credit of service tax in respect of specified services, unless such service is used exclusively in or in relat....

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....s has been admitted by the Director of the Company. Thus, there is a suppression of fact and in our view the extended period of limitation is correctly invoked. 20. We have also gone through the findings of the Commissioner relating to the extended period of limitation and we entirely agree availment of cenvat credit the primary responsibility that the credit has been correctly taken is on the manufacturer or availer of cenvat credit as per Rule 9 (5) and 9 (6). Rule 9 (5) very clearly provides that the burden or poof regarding admissibility of the cenvat credit shall lie upon the manufacturer or provider of output service taking such credit. In view of this position, we have no hesitation in holding that the extended period of limitatio....