2018 (8) TMI 1502

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....arbon ferro chrome & silico manganese and clearing the same on payment of appropriate duty. During the period 2011-12 to 2013-14, it was alleged in the show-cause notice that respondents had engaged himself in a trading activity which is an exempted service and was availing the CENVAT credit on inputs and having rendered a trading activity services is required to pay an amount equivalent to 6% of the duty amount attributable to value of trading activity for the relevant period in question. Show-cause notice also sought interest and also proposed penalties. Appellant contested the show-cause notice on merits submitting that there was no trading activity undertaken by them and the income shown in the balance-sheet out of sale of raw materials....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....value needs to be discharged. It is his submission that the impugned order may be set aside and the appeal may be allowed. 4. Learned consultant appearing for the respondent submits that the facts are not disputed. It is his submission that out of the quantity of manganese imported by the respondent they consumed most of it but could not consume some part and have sold those to different customers on payment of appropriate taxes under the statutory provisions which is considered by the Revenue as trading activity. He would draw my attention to the phrase "trading activity" requires basically trading of the goods and the activity of selling excess raw material would not fall under the category of trading as the said raw material manganese....