9911796707
TMI Blog2014 (8) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... nvat Credit Rules, 2004 it is clear that input service distributor can distribute Service Tax paid on the input service to its manufacturing units. In the facts and circumstances of the present case, it cannot be said the applicants are manufacturing unit of M/s. Merck. Further, we find that as per the definition of ‘input service distributor’ as provided under Cenvat Credit Rules, 2004, ‘input service distributor’ means an office of the manufacturer or producer of final products or provider of output service. In view of the facts and circumstances of the present case, office of M/s. Merck cannot be held to be the office of the present applicants who are independent manufacturers. Invocation of extended period of limitation - Held that:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respect of service tax paid by M/s. Merck Specialities Pvt. Ltd. (hereinafter referred to as Merck and revenue objected to the same. 4. Applicants are job worker of M/s. Merck. The applicants availed credit in respect of Service Tax paid by M/s. Merck in respect of the above mentioned taxable services on the ground that M/s. Merck is the input service distributor and the Service Tax paid by the office of M/s. Merck can be distributed to their manufacturing units. The Revenue denied the credit on the ground that the applicants are independent manufacturers and are not manufacturing units of M/s. Merck. 5. The contention of the applicants is that as per the agreement, the applicants are manufacturing goods on behalf of M/s. Merck and ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g units as both are separate legal entities. The learned Jt. CDR relies on the provisions of Rule 7 of the Cenvat Credit Rules, 2004. The contention is that input service distributor can distribute Cenvat Credit in respect of Service Tax paid on the input services to its manufacturing unit or units providing output service. The learned Jt. CDR emphasises on the word its manufacturing unit to say that the applicants are not manufacturing unit of M/s. Merck. Therefore, the applicants are not entitled for any credit in respect of the Service Tax paid by M/s. Merck. The learned Jt. CDR also submitted that the Service Tax has been paid in respect of taxable service such as car-hire charges, repairs and maintenance, CHA (Exports) services, Even ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4, input service distributor means an office of the manufacturer or producer of final products or provider of output service. In view of the facts and circumstances of the present case, office of M/s. Merck cannot be held to be the office of the present applicants who are independent manufacturers. 11. In respect of the arguments raised by the applicants on time bar issue, we find the applicants were filing monthly returns in respect of credit availed and utilised towards payment of duty, hence, prima facie the argument that the demands are beyond the normal period of limitation is not sustainable. During the argument, the learned counsel for the applicants submitted that almost 50% of the demand in both the cases are beyond the normal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , and the benefit which the applicant would derive from compliance with it. 14. The word undue adds something more than just hardship. It means an excessive hardship or a hardship greater than the circumstances warrant. 13. In view of the facts and circumstances of the present case and in view of the decision of the Hon ble Supreme Court, we find prima facie it is not a fit case for total waiver of the dues. Taking into consideration the plea of limitation, M/s. Sunbell Alloys Co. of India Ltd. are directed to deposit ₹ 30,00,000/- (Rupees thirty lakhs only) and the applicants M/s. Machsons Pvt. Ltd. are directed to deposit ₹ 25,00,000/- (Rupees Twenty five lakhs only) within eight weeks and report compliance on 15-12-20 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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