9911796707
TMI Blog2012 (12) TMI 551X X X X Extracts X X X X X X X X Extracts X X X X ..... e stay applications filed by the appellant seek waiver and stay in respect of the demands raised on 8 units of the appellant-company under Rule-14 of the CENVAT Credit Rules 2004 read with Section 11A of the Central Excise Act and also the penalties imposed on the appellant under Rules 15 and 15A of the CENVAT Credit Rules 2004. On a perusal of the records, I find that the appellant-company, regis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cts (pharmaceutical formulations) and those utilized in relation to the trading activity. On this basis, the department issued show-cause notices to the 8 units of the company for recovery of CENVAT credit taken on input services used in relation to the trading activity. Six show-cause notices also were issued on 12/7/2010 for recovery of CENVAT credit availed in 2008-2009. They invoked the extend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... empted service. It is submitted that the entire credit distributed by the company's Bangalore office was utilized by the eight manufacturing units of the company for payment of duty on pharmaceutical formulations and, therefore, no part of the credit was liable to be denied to the manufacturing units. Per contra, it is submitted by the learned Superintendent (A.R.) that it was not open to the Bang ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons, it appears to me that the show-cause notices were issued by the department in a confused state of mind. It is not in dispute that the Bangalore office of the company was a registered input service distributor and it distributed input services under cover of valid invoices to the various manufacturing units, eight in number, which were engaged in the manufacture of pharmaceutical formulations ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xable services under Section 65 of the Finance Act 1994 and, therefore, there was no question of payment of service tax on that activity by the manufacturing units of the company. Prima facie, therefore, the manufacturing units could not have been expected to maintain separate accounts. The show-cause notices appear to disclose self-contradictory stand of the revenue with reference to the fact of ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
