2018 (11) TMI 230

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....ng the Audit it is also observed that it has carried out sale of raw materials by selling the same to M/s Cipla Ltd., Mumbai, on whose behalf it also undertakes manufacturing process on job work basis. As per Rule 6 of CENVAT Credit Rules, 2004, if separate account for manufacturing on such trading by way of sale is not maintained, the assessee is liable to pay 6%/7% of the value of exempted goods/services besides payment under sub-rule 3A of Rule 6 of CENVAT Credit Rules, 2004. Appellant was put to notice on the basis of such Audit report which was objected by it but ultimately resulted in imposition of such duty liability including interest and penalty covering extended period on the ground of suppression of facts etc. 3. During the co....

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....riod which should never had extended the duty demand for the extended period. He prayed for setting aside of the order of the Commissioner (Appeals). Learned Counsel for the appellant has relied upon the various judgments in his support: (i) CCE & SERVICE TAX, Ghaziabad Vs. Mahaveer Cylinders Ltd. - 2016 (341) ELT 361 (Tri.-All.) (ii) CCE, Ghaziabad Vs. UP Telelinks - 2015 (329) ELT 888 (Tri.-Del.) (iii) A. R. Casting (P) Ltd. Vs. CCE & ST, Chandigarh - 2010 (256) ELT 420 (Tri.-Del.) (iv) Chitrakoot Steel & Power Pvt. Ltd. Vs. CCE, Chennai- 2008 (10) STR 118 (Tri. Chennai) (v) CCE, Chandigarh-I Vs. Punjab Steels - 2011 (21) STR 5 (P & H) (vi) Exide Industries Ltd. Vs. CCE & ST, Raigad - 2018-TIOL-1541- CESTAT-MUM 4. Lea....

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....tion of India under a new Article (29A). 5.2 On the other hand "Service" as defined under 65B (44) of the Finance Act, 1994 excludes (ii) such transfer, delivery or supply of any goods which is deemed to be a sale within the meaning of clause (29A) of article 366 of the Constitution. 6. From a bare reading of the definition and provision reproduced above, it is apparently clear that a pure sale, un-associated with delivery of goods and services together, is not to be considered as service. Therefore what is contained in Section 66D of the Finance Act, 1994 dealing with negative list of services concerning trading of goods and the clarificatory circular referred above as well as inclusion of the same in the explanation appended to clau....