2017 (11) TMI 887

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....on C & F Agent on the ground that it has been entirely used for trading activity to the tune of Rs. 3,35,703/-. 2. Briefly the facts of the present case are that the appellants are engaged in providing service to the customers under the category "Erection, Commissioning and Installation Service, Management Maintenance or Repair Service, Business Auxiliary Service, Transport of Goods by Road". They are availing exemption under Notification No.4/2004-ST dated 31.3.2004 for the services provided to the units under SEZ. The appellants were availing CENVAT Credit on input services used for providing taxable services, such as telephone, courier, advertisement, maintenance and repair, C & F agents, etc. The input services on which, the CENVAT c....

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.... submitted that the services provided to a Unit in SEZ are export service and not an exempted service. He also submitted that as per Section 51 of SEZ Act, 2005 the provisions of the Act shall have effect not withstanding anything inconsistent therewith contained in any law for the time being in force or in any instrument having effect by virtue of any law by this Act". Thus, SEZ has an overriding effect on provisions contained in any other Act. He also submitted that as per the Notification No.3/2011 dated 1.3.2011, Rule 6 of CENVAT Credit Rules was amended and after Rule 6(6) of CENVAT Credit Rules, the following sub Rule (6A) was inserted: "(6A) the provisions of sub-rules (1), (2), (3) and (4) shall not be applicable in case th....

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....elated to the business of the manufacturer for which CENVAT credit is available to the manufacturer and it cannot be denied. He further submitted that the service of AFL Pvt. Ltd. is also used for storage of spare parts which are used / consumed during rendering of repairs and maintenance service by the appellant. He also submitted that the position of law prevailing during the relevant period and that changes in the same was introduced with effect from 1.4.2011 whereas the Original Authority has proceeded on the ground that the trading activity is an exempted service and by applying Rule 6 of CENVAT Credit Rules, proportionate credit is required to be reversed/recovered. He also submitted that trading was not classifiable as an exempted se....