TaxTMI 
TaxTMI 
2024 (9) TMI 108
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....t on inputs and input services under Cenvat Credit Rules, 2004. 2. The appellant is also engaged in the trading of goods such as Manual Hydraulic, 3D Wheel Aligner, Spark Plug Cleaner, Tyre Changer, Manual Hydraulic Jac etc. They are having Dealers Registration Certificate also. The appellant imports certain goods and also procures goods domestically for the purpose of trading. 3. During the course of audit of accounts of the appellant by the Internal Audit Section, it was noticed that the appellant has availed cenvat credit of service tax paid on various input services used commonly in relation to manufacture and also trading activity. The appellant is not eligible to avail credit on trading activity. They had not reversed the credit in ....
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....l as trading which is erroneous. 5. Another allegation raised in the SCN is that the appellant has availed credit on input services such as GTA and CHA services used exclusively for trading activity. The appellant has not used any input services exclusively for trading. Appellant has stated in the reply to the SCN that they have not availed any such services exclusively for trading. The GTA, CHA, housekeeping, courier services etc. were used commonly for manufacture as well as the trading. The Ld. Counsel adverted to the Annexure I of the SCN to explain the amounts reversed by the appellant from 1.4.2011 onwards in compliance with Rule 6 (3A). However, the said reversals have been totally disregarded by the department and the adjudicating ....
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....para 10 & 11 that the appellant has used GTA and CHA services exclusively for trading. However, in case of certain invoices these services have been used for manufacture also. The appellant having not provided the bifurcation, the adjudicating authority is correct in holding that appellant has availed ineligible credit. The demand has been confirmed correctly. 7.1 In regard to issue on limitation, the Ld. A.R submitted that the availment of credit on trading would not have come to light but for the audit conducted by the officers. The appellant has suppressed facts and the SCN issued invoking extended period is legal and proper. The Ld. A.R prayed that the appeal may be dismissed. 8. Heard both sides. 9. The issue that arises for conside....
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....mand raised in SCN and confirmed by adjudicating authority is erroneous. 12. The reason given by adjudicating authority for confirming the entire common input credit is that appellant has availed credit on input services exclusively used for trading. On perusal of the SCN, we find that these are merely assumptions made on the basis of invoices. It has not been established that the appellant has availed credit exclusively for trading. In the reply to SCN the appellant has stated that they have not availed credit on any input services exclusively used for trading. The confirmation of the entire common input service credit on such allegation is baseless. 13. The Ld. Counsel has argued on the ground of limitation. The issue as to whether trad....