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TMI Blog2016 (5) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... e three units. By applying the judgment of Gujarat High Court in the case of Commissioner of Central Excise Vs. Dashion Ltd. [2016 (2) TMI 183 - GUJARAT HIGH COURT], the objection of the department therefore that the credit from one unit was utilized for the purpose of duty liability of other unit without pro rata distribution by the input service distributor therefore would not survive in view of no previous restriction of this nature flowing from Rule 7 of the Rules of 2004. The respondent has been able to prove that all the three units are one and the same, have common management and the Revenue has not been able to disprove this fact. - Decided against the revenue - DB Central Excise Appeal No.3, 4, 5, 6, 7, /2016 - - - Dated:- 8-2-201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paid on services rendered by the service providers for whole group of M/s. National Engineering Industries Ltd. instead of solely in respect of unit situated at Khatipura Road, Jaipur. The assessee objected to the said show cause notice and contended that the units may be situated at different places but are under the common management and the Cenvat Credit has rightly been claimed. The assessee also submitted the details of credit of service tax availed on input tax services availed of by it from time to time. The assessee reiterated that it is having three units (i) at Jaipur, (ii) Niwai and (iii) Manesar and that all the three units are owned by the company working in the name of style of M/s National Engineering Ltd. which is a company ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompany situated at Niwai and Manesar are very small units. It was also contended that the break up of the turnover of the three units in respect of the production/sale of final products in the relevant period was also provided namely; Jaipur unit 85.86%, Newai unit 13.83% and Manesar unit 00.31%. It was also submitted that admittedly the consolidated balance sheet, profit loss account, trading account etc is being prepared from year to year. 4. However, the Commissioner was not satisfied with the explanation so offered and taking into consideration the definition of input service and judgments, came to the conclusion that the input service in the instant case means only those services which are used in or in relation to manufacture ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oning. He contended that even as per the assessee 85.86% was the total turnover of the unit at Jaipur which clearly speaks that the other units were only for the name sake. He thus contended that substantial question of law arise out of the order of the Tribunal. 7. We have heard counsel for the appellant and taken into consideration the material available on record. In our view, no substantial question of law arise out of the order of the Tribunal and the Tribunal has rightly found that all the three units had a common management and no contrary material was placed on record by the Commissioner while holding that there was no nexus in between the three units. We may also observe that while the Tribunal relied upon the judgment of CESTAT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iding of exempted service shall not be distributed. 10. It was only later on that additional condition by way of Clause-(d) of Rule 7 was added, which reads as under:- credit of service tax attributable to service used by more than one unit shall be distributed pro rata on the basis of the turnover of such units during the relevant period to the total turnover of all its units, which are operational in the current year, during the said relevant period. 11. The objection of the department therefore that the credit from one unit was utilized for the purpose of duty liability of other unit without pro rata distribution by the input service distributor therefore would not survive in view of no previous restriction of this nature flo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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