2019 (3) TMI 609

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....that the appellants are manufacturers of alarm and signalling devices and light fittings. The availed the facility of Cenvat credit of duty paid on inputs and capital goods and service tax paid on input services. During the course of audit of accounts, it was noticed that the appellant had effected high-sea sales during the period 2012-13 to 2016-17 [upto Nov.'16], which according to department wa....

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....counsel Shri M. Karthikeyan submitted that the allegation is that the appellants have used common input services for trading (high-sea sales) and also manufacturing activity. He explained that the trading has occurred beyond the territorial jurisdiction of Central Excise authorities and, therefore, the said demand alleging that trading is an exempted service cannot sustain. He relied upon the deci....

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.... to demand raised alleging that credit was availed on common input services which were used for trading activity (high-sea sales) and manufacturing activity. From the arguments put forward by learned counsel for appellants it is brought out that high-sea sales has taken place outside the jurisdiction of Central Excise authorities. The Tribunal in the case of M/s. Rajpetro Specialities Pvt. Ltd., (....

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....yond 200 nautical miles from the shore is called „High Sea‟. The transaction of sale in such cases commences outside the territory of India and is also concluded outside the territory of India. If a buyer (importer) wants to sell the consignment to a third party before arrival of such goods, but after sailing of the vessel from load port, such sale is generally High Sea Sale. In other ....