2017 (9) TMI 1431

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the appellant is required to reverse the Cenvat credit availed on three common input services which are utilized for discharging duty liability on the finished goods as well as for trading activities. It is undisputed that during the period October, 2016 to March, 2011, the appellant had activity of manufacturing as well as trading of the goods. Appellant has been availing Cenvat credit of service tax paid on inputs and input services which are utilized for manufacturing activity as well as for trading activity. The adjudicating authority while confirming the demands raised in showcause notice issue, held that the trading activity being exempted service by adopting a method of calculation i.e. sales turnover on trading activity to the total....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... DR submits that the issue is no more res intergra as the Hon'ble High Court of Madras in the case of M/s. FL Smidth Pvt Ltd. vs. CCE, Tiruchirapalli and CESTAT, Chennai; 2014-TIOL-2186-HC-MAD-CS, has held that trading activity even prior to 01.04.2011 would be considered as exempted services. 6. Heard both sides and perused the records. 7. The facts are not much in dispute. It is admitted that during the period in question, appellant had engaged in trading activity as well as manufacturing activity and has availed Cenvat credit of common input services and reversed proportionate Cenvat credit attributable to the trading activity as per the impugned order in original. The only dispute that has raised before the Tribunal is the method ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....re is no manner of doubt that input service means goods which is used by the manufacturer directly or indirectly in relation to the manufacturing of final product and clearance of final product from the place of removal. In the present case, the Department has allowed cenvat credit in respect of the value of goods amounting to Rs. 5.41 crores and denied for the balance. We find no error in such determination, which is in consonance with Rule 2(1) of the Cenvat Credit Rules. * On the plea of limitation, it has been considered by the Adjudicating Authority, Commissioner (Appeals) and the Tribunal and there is a clear finding that the appellant had not disclosed the availment of input service credit on commission in respect of trading activ....