2013 (8) TMI 256

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..... impugned adjudication order dated 3.9.2012 is the relief sought in this application. 2. Petitioner is the appellant/assessee, a company incorporated under the Company Act, 1956 having its Corporate office at Noida. The corporate office is registered as an input service distributor under Section 69 of the Finance Act, 1994 and is also registered for payment of service tax under reverse charge unde .....

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..... of input service actually received and utilized at its Noida unit and distributed to their group unit elsewhere., in contravention of Rule 3 read with Rule 2(m), Rule 7(b) and Rule 9 of the Cenvat Credit Rules, 2004 which requires to be disallowed and recovered under Rule 9 of the said Rules read with the proviso to Section 11A(1) of the Central Excise Act, 1944 along with interest under Section 1 .....

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..... its do not manufacture any final product nor provide output service to any outsider; and that the units in respect of which cenvat credit was distributed were manufacturing units producing dutiable and excisable goods. 5. In Deepak Fertilizers and Petrochemicals Corporation Ltd. v. C.C.E., Belapur, an identical issue as in the present case was considered by the Bombay High Court. The appellant wa .....

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..... appeal to the Bombay High Court. On analysis of the relevant provisions, of Rule 3(1) and Rule 2(l) of 2004 Rules, the High Court held that while Rule 3(1) allows a manufacturer of a final product to take credit of excise duty and service tax among others paid on any input or capital goods received in the factory of manufacturer of final products, in so far as any input service is concerned, the o .....

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..... course of audit during September 2006 and having regard to the fact that report of the audit was available in February 2007, the show cause notice issued on 14.10.2011 is beyond the period of limitation. 7. In view of the decision of the Bombay High Court in Deepak Fertilizers and Petrochemicals Corporation Ltd. (supra), the petitioner has made out a strong prima facie case. We accordingly grant .....

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