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TMI Blog2016 (11) TMI 477X X X X Extracts X X X X X X X X Extracts X X X X ..... at Dadra unit. It is also not in dispute that the entire credit relates to the input services viz. security service, general insurance service, consultancy engineering services received and utilized at their Sikkim unit. It is the contention of the Appellant that as per the existing provisions during the relevant period, there was no necessity that the input services be received and utilized in the factory of the manufacturer where CENVAT Credit was availed. Reliance placed on the decision of the case of CCE Bangalore-I Vs ECOF Industries Pvt. Ltd 2011 [2011 (2) TMI 1130 - KARNATAKA HIGH COURT] where it was held that The law mandates that the manufacturer who wants to avail the benefit of this service tax if he has more than one unit h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tside the scope of definition of input service prescribed at Rule 2(l) of CENVAT Credit Rules 2004, a Show Cause cum demand notice was issued to them on 08.09.2011 for recovery of credit with proposal for imposition of penalty. On adjudication, the demand was confirmed and penalty of equal amount imposed. Aggrieved by the said order, the Appellants preferred an appeal before the learned Commissioner (Appeals), who in turn, rejected their appeal. Hence, the present appeal. 3. The learned Advocate for the Appellant submitted that they have availed CENVAT Credit on the basis of invoice issued by their head office, which was registered as an input service distributor under the relevant provisions of Service Tax Rules, 1994. It is his content ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity undertaken at Dadra unit. Accordingly, CENVAT Credit cannot be held admissible to the Appellant. The learned Authorized Representative placed reliance on the Stay Order of the Tribunal in the case of M/s Hindalco Industries Vs CCE Allahabad 2013 (292) ELT 416 (Tri-Del). 5. Heard both sides and perused the records. 6. Undisputedly, the Appellants on the basis of invoices issued under Rule 4A of Service Tax Rules, 1994 by their head office registered as an input service distributor availed CENVAT Credit at their manufacturing facility at Dadra unit. It is also not in dispute that the entire credit relates to the input services viz. security service, general insurance service, consultancy engineering services received and utilized a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... may be. Therefore, the law mandates that the manufacturer who wants to avail the benefit of this service tax if he has more than one unit he should also get registered himself as a service provider and then, he would be able to collect all the input service tax paid in all its units and accumulate them at its head office and distribute the said credit to its various units. (Emphasis supplied) At the time of distribution, the manner of distribution is provided in Rule 7 which reads as under :- Rule 7. Manner of distribution of credit by input service distributor. The input service distributor may distribute the CENVAT credit in respect of the service tax paid on the input service to its manufacturing units or units providing outpu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (b) credit of service tax attributable to services used in a unit either exclusively manufacturing exempted goods or exclusively providing exempted services shall not be distributed. An input service distributor is required (under Section 69 of the Act, read with Notification No. 26/2005-S.T.) to take a separate registration. 10. Therefore, these are the only two limitations, which are imposed in Rule 7 preventing the manufacturer from utilizing the CENVAT credit, otherwise, he is entitled to the said credit. Merely because the input service tax is paid at a particular unit and the benefit is sought to be availed at another unit, the same is not prohibited under law. It is in this context, the manufacturer is expected to register h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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