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TMI Blog2017 (11) TMI 1169X X X X Extracts X X X X X X X X Extracts X X X X ..... tax attributed to the turnover of their unit. The facts were not verified - the adjudicating authority needs to examine proportionate credit in terms of Rule 7 - appeal allowed by way of remand. - E/85652/16 - A/90339/17/SMB - Dated:- 31-10-2017 - Mr Ramesh Nair, Member (Judicial) Shri. Rajesh Ostwal, Advocate for the Appellants Shri. H.M. Dixit, Asstt. Commissioner(A.R.) for the Respondent ORDER The issue involved is whether the appellant is entitle for Cenvat credit on input service distributor's invoice issued by their regional office in respect of GTA service. The case of the department is that the regional office and depot are availing service of GTA in respect of goods manufactured and cleared from differ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvice tax paid on the input service to its manufacturing units or units providing output service, subject to the following conditions, namely:- (a) The credit distributed against a document referred to in rule 9 does not exceed the amount of service tax paid thereon; or (b) Credit of service tax attributable to service use in a unit exclusively engaged in manufacture of exempted goods or providing of exempted services shall not be distributed; As per the above provision the only two conditions required to be fulfilled that the credit distributed should not exceed amount of service tax paid on the input service invoice and second- credit of service tax attributed to service for unit exclusively engaged in the manufacture of ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax attributable to service used wholly in a unit shall be distributed only to that unit; and (d) Credit of service tax attributable to service used in more than one unit shall be distributed pro-rata on the basis of the turnover of the concerned unit to the sum total of the turnover of all the units to which the service relates. Explanation 1. - For the purposes of this rule, unit includes the premises of a provider of output service and the premises of a manufacturer including the factory, whether registered or otherwise. Explanation 2. - For the purposes of this rule, the total turnover shall be determined in the same manner as determined under rule 5. From the above amended Rule 7 w.e.f. 17-3-2012 vide Notification ..... X X X X Extracts X X X X X X X X Extracts X X X X
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