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TMI Blog2017 (2) TMI 777X X X X Extracts X X X X X X X X Extracts X X X X ..... was added - 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. Appeal dismissed - decided against Revenue. X X X X Extracts X X X X X X X X Extracts X X X X ..... se 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 duly registered under the Companies Act and all the three units of the Company are engaged in the production of Homogenous product namely Bearings falling under Chapter 84 of First Schedule to the Central Excise Tariff Act, 198 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amely; 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 of goods qualify for input service and input services including those mentioned in the inclusive part of the definition and held that there should have been direct nexus with manufacture of final product and that specified input ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 in the case of Doshion Ltd. Vs. CCE Ahmedabad (supra), the High Court of Gujarat at Ahmedabad dismissed the appeal of the Revenue in the case of Commissioner of Central Excise Vs. Dashion Ltd. (Tax Appeal No.415 of 2013 & 662 of 20014) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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. 12. In our view, the said judgment is squ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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