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TMI Blog2016 (12) TMI 529X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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 other 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. The Appellants have heavily placed reliance on the judgment of Hon'ble Karnataka High Court in the case of ECOF Industries Pvt. Lt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... RDER Per Dr D. M. Misra This is an appeal filed against OIA-SRP/43/VAPI/2012-13 dt 25.4.2013 passed by the Commissioner of Central Excise, Customs and Service Tax (Appeals) -VAPI. 2. Briefly stated the facts of the case are that the Appellants are engaged in the manufacture of Diesel Generating Sets falling under Chapter 84 of Central Excise Tariff Act, 1985. They had availed CENVAT Credit, amounting to ₹ 14,56,225/- during the month of October 2008, on the basis of invoices issued by their head office registered as input service distributor. Alleging that the input services viz. security service, general insurance service, consultancy engineering services were received at their Silvasa EOU unit, having no nexus with manufac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndustries Pvt. Ltd 2011 (23) STR 337 (Kar). Further, he has submitted that the demand is barred by limitation in as much as in the relevant ER-1 monthly return, the Appellant had informed about availing of such credit to the Department and no facts had been suppressed from the knowledge of the Department. Therefore, the demand notice issued in 18.1.2011 for recovery of the credit availed in October 2008 is clearly barred by limitation. 4. The learned Authorized Representative for the Revenue reiterates the findings of the learned Commissioner (Appeals). He has submitted that the credit availed on various input services requires to have nexus with the manufacture and clearance of final product from the place of its removal. In the presen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dships, after interpretation of scope of input service and input service distributor , observed as follows:- 8. It is in this context, the definition of input service distributor makes it clear that a manufacturer or a producer of a final product or a provider of output service may have more than one unit and may be distributed in various parts of the country. It is in this background the definition of service distributor is defined as office of the manufacturer or producer of a final product or provider of output service which receives invoices issued under Rule 4A of the Service Tax Rules, 1994 towards purchases of input services and issues invoice, bill or, as the case may be, challan for the purposes of distributing the credit of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ged in the manufacture of exempted goods or providing of exempted services. 9. In fact, the Board has issued a circular clarifying in this regard, which is extracted by the tribunal at para 7 which reads as under :- Para 7. Para 2.3 of the Master Circular referred to by the ld. Advocate reads as under :- 2.3.- An Input service distributor is an office or establishment of a manufacturer of excisable goods or provider of taxable service. It receives tax paid invoices/bills of input services procured (on which Cenvat credits can be taken) and distributes such credits to its units providing taxable services or manufacturing excisable goods. The distribution of credit is subject to the conditions that - (a) the credit distribut ..... X X X X Extracts X X X X X X X X Extracts X X X X
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