2018 (6) TMI 1336

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.... the value of exempt services, i.e. trading of raw material during the period 2008-09 to 2011-12. 2. The brief facts of the case are that the respondent was engaged in manufacture of certain products and was also engaged in trading of certain other products. That the word "Trading" was not chargeable to Service Tax as the same was not included in any of the provisions of the Finance Act, 1994. The provision for Exempted Services was defined in Rule 2(e) of the Cenvat Credit Rules, 2004, as "Exempted Services means Taxable Services, which are exempt from the whole of the Service Tax leviable thereon, and includes services on which no Service Tax is lieviable under Section 66 of the Finance Act, 1994." However, by an amendment dated 01.03.20....

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....of the Central Excise Act, 1944. Further confirmed the demand of Rs. 15,89,542/- and disallowed Cenvat credit of Rs. 3,22,448/- and imposed penalty of Rs. 19,11,990/- under Rule 15 of Cenvat Credit Rules, 2004. The Adjudicating Authority has relied upon the decision in the case of Union of India Versus Rajasthan Spinning & Weaving Mills reported at 2009 (238) E.L.T. 3 (SC). 4. Being aggrieved by the said order, respondent-assessee preferred appeal before the ld. Commissioner (Appeals), who vide impugned OIA, on the grounds that trading activity cannot be defined as exempted service before 1st April, 2011 (Amendment) and the said debit notes could be considered as valid duty paying documents, held that the Department has failed to establish....