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TMI Blog2011 (10) TMI 389X X X X Extracts X X X X X X X X Extracts X X X X ..... ufacturer of Motor Vehicle Parts falling under Chapter 87 of the Central Excise Tariff Schedule. They have another manufacturing unit at Wagholi. Their Head Office is registered as an Input Service Distributor. It was noticed that Head Office had distributed input Service Tax amounting to Rs.1,21,497/- to the Kanhe unit in respect of services rendered to their another unit at Wagholi. Inasmuch as the services rendered were not availed by the Kanhe unit, a show-cause notice dated 1.10.2009 was issued to the appellant for recovery of the CENVAT Credit of Rs.1,21,497/- wrongly availed by them in terms of the provisions of Rule 14 of the Cenvat Credit Rules, 2004 and interest thereon was sought to be recovered under the said Rules. The notice a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er law. Once the manufacturer is registered as an Input Service Distributor, he is entitled to distribute credit of such input in the manner prescribed under law. In the light of this judgment, the appellant claims that they are rightly entitled for the input service tax credit. 4. Shri A.K. Prabhakar, learned Supdt. (A.R.) appearing for the Revenue submits that in the instant case the input Service Tax paid for services availed at Wagholi unit has been distributed to the Kanhe unit and these services pertain to Warehousing service for the Warehouse facility for Wagholi unit, maintenance and repair service of the office equipment used in the Wagholi unit and also for the vehicles used in the Wagholi unit. These services are no way connecte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... service,- (i) used by a provider of taxable service for providing an output service; or (ii) used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products upto the place of removal, and includes services used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Large Tax Payer unit and only when they register as a Large Tax Payer unit, they could transfer credit from one unit to another. The judgment in the case of Maruti Suzuki (supra) makes it also clear that unless and until the input service has nexus directly or indirectly, in or in relation to the manufacture of final products, the credit cannot be availed. 7. In the light of these judgments, I am of the view that the appellant has not made out any case for granting complete waiver of pre-deposit of the dues adjudged. Accordingly, I direct the appellant to pre-deposit the amount of Service Tax credit of Rs.1,21,497/- within a period of four weeks and report compliance by 25.11.2011. On such compliance, the balance of dues adjudged shall be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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