9911796707
TMI Blog2017 (3) TMI 1438X X X X Extracts X X X X X X X X Extracts X X X X ..... services were used in a manufacturing unit making both, the exempted as well as dutiable goods. In the present case, the full Cenvat credit has been availed by the ISD who is required to distribute the same to various units as per Rule 7of CCR. The Rule 7 only enforces the condition that credit of service tax attributed to services used in units exclusively engaged in the manufacture of exempted goods or providing exempted services shall not be distributed - there is nothing on record to suggest that any of the services have been used only in the units manufacturing exempted goods. In fact, the nature of services tells us that these are used at the level of corporate of the manufacturing units of the assessee. Under the circumstances, re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agement Consultancy service (f) Clearing and Forwarding Agency service In respect of the above common input services, the Cenvat credit was taken by the entire Input Service Distributor (ISD) of the appellant. The ISD thereafter distributed the Cenvat credit to the Kaladwas unit. Based on the ISD invoice which has distributed the credit, appellant at Kaladwas unit took Cenvat credit and utilized the same for payment of excise duty on the final products cleared by it. In the present proceeding, the Revenue sought to deny the Cenvat credit taken by the Kaladwas unit and after due process of law, the adjudicating authority has confirmed the demand along with interest against the appellant and also imposed penalties. Aggrieved by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. DR supported the impugned order. He submitted that the service providers rendering the services in question should have raised the bills separately in respect of the services to be used in different units. Since the service providers have failed to do so, he submitted that the ld. Commissioner has rightly disallowed the credit attributable to four exempted units located in Himachal Pradesh. 6. For ready reference, the relevant Cenvat Credit Rule is reproduced below:- 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 output service, subjec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ell as dutiable goods. In the present case, the full Cenvat credit has been availed by the ISD who is required to distribute the same to various units as per Rule 7of Cenvat Credit Rules. The Rule 7 (as it stood at the relevant time) only enforces the condition that credit of service tax attributed to services used in units exclusively engaged in the manufacture of exempted goods or providing exempted services shall not be distributed. The appellant s four manufacturing units are covered by area based exemption and no such duty is payable on the goods manufactured there. However, there is nothing on record to suggest that any of the services have been used only in the units manufacturing exempted goods. In fact, the nature of services tells ..... X X X X Extracts X X X X X X X X Extracts X X X X
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