9911796707
TMI Blog2017 (10) TMI 753X X X X Extracts X X X X X X X X Extracts X X X X ..... he other unit in manufacturing of final products on which duty liability is discharged and also for providing taxable output services. This undisputed fact would, go to show that appellant could/can distribute the entire service tax credit as per the provisions of Rule 7 to one unit or of the other units - the issue being of revenue-neutrality, appellant-assessee could have availed the cenvat credit of the service tax paid on various input services without registering the Head Office as ISD - credit allowed - appeal allowed - decided in favor of appellant. - ST/16/2010, ST/988/2011 & E/166/2010-SM - 22436-22438/2017 - Dated:- 10-10-2017 - Shri M. V. Ravindran, Judicial Member Shri H.Y. Raju, Advocate For the Appellant Dr. J. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellate Authority by Order-in-Appeal No. 42/2009 dated 30.09.2009 allowed the cenvat credit of ₹ 9,800/- (Rupees Nine Thousand Eight Hundred only) (which was denied by the adjudicating authority) setting aside the penalties and the interest imposed, without upholding the direction of adjudicating authorities to follow ISD route. No demand arises out of this Order-in-Appeal. Appellant-assessee aggrieved by such an order, preferred an appeal before the Tribunal which is numbered as E/166/2010. Revenue is also aggrieved by this Order-in-Appeal No. 42/2009 and has filed an appeal which is numbered as ST/16/2010. During the interim period, Commissioner of Service Tax issued a show-cause notice to appellant directing them to show-cause as to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... olved, he would submit that Departments case is limited to contending that since the other units are also beneficiaries to the services, the main unit instead availing full credit ought to have distributed the credit by adopting ISD route; as per Circular dated 23.08.2007 at material point of time appellant could have distributed the credit to any of its units therefore availing entire credit at Head Office cannot be faulted with; during the relevant point of time as per Rule 7 there was no prohibition to avail the credit in any of the units subject to only two conditions credit distributed does not exceed the amount of service tax indicated therein and credit of service tax should not be distributed to unit either exclusively manufacturing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his subordinates. I find that provisions of Section 84 of the Finance Act 1994 as it was in statute during the relevant period need to be reproduced. Section 84. Revision of orders by the Commissioner of Central Excise.- (1) The Commissioner of Central Excise may call for the record of a proceeding under this Chapter in which an adjudicating authority subordinate to him has passed any decision or order subordinate to him and may make such inquiry or cause such inquiry to be made and, subject to the provisions of this Chapter, pass such order thereon as he thinks fit. (2) No order which is prejudicial to the assessee shall be passed under this section unless the assessee has been given an opportunity of being heard. (3) T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before the first appellate authority. In my view, the Order-in-Revision dated 31.01.2011 is correct and legal does not require any interference. 6.2. On merits, I find that in Appeal E/166/2010 the assessee has argued that appellant cannot be forced to take the ISD route for the period in question, for which he relies on binding decisions of the Tribunal which indicate that distribution of the credit by Head Office without taking registration as ISD cannot be an impediment for availing of cenvat credit; non-registration as input service distributor fact of the same does not disentitle any assessee from availing cenvat credit is the law settled by the following decision of the High Court and Tribunal: a) Trident Powercraft Pvt. Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an be utilized by the other units for discharging Central Excise duty or Service Tax on the output services provided is nothing but a revenue-neutral situation wherein it would be futile exercise of taking the route of ISD registering business and distributing the same. It was informed to the Bench by the learned counsel that subsequently, appellant had taken the registration as an ISD and is functioning under the said registration. 7. In view of the foregoing, since on merits itself I have come to a conclusion that the issue being of revenue-neutrality, appellant-assessee could have availed the cenvat credit of the service tax paid on various input services without registering the Head Office as ISD (as decided by various decisions as c ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
