Cenvat Credit Reversal Upheld as Trading Activity Was Not a Taxable Service: CESTAT Bangalore

Pratham Motors Pvt. Ltd. Vs Commissioner of Service Tax (CESTAT Bangalore) The appeal was filed against Order-in-Original No. 42/2014 dated 05.09.2014 passed by the Commissioner of Service Tax, Bangalore. The appellant, a dealer of Maruti cars, was engaged in providing authorised servicing of Maruti vehicles and also carried on the trading activity of selling Maruti cars. While the servicing activity was taxable, the sale of cars was exempt from service tax. Since the appellant had availed Cenvat credit on services used for both taxable and non-taxable activities, a show-cause notice was issue...