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TMI Blog2018 (1) TMI 1010X X X X Extracts X X X X X X X X Extracts X X X X ..... e tax is paid at a particular unit and the benefit is sought to be availed at another unit, the same is not prohibited under law - appeal dismissed - decided against Revenue. - E/499/2010 - Final Order No. 40083 / 2018 - Dated:- 12-1-2018 - Ms. Sulekha Beevi C.S., Member ( Judicial ) And Shri Madhu Mohan Damodhar, Member ( Technical ) Shri K.P. Muralidharan, AC ( AR ) for the Appellant Shri N. Viswanathan, Advocate for the Respondent ORDER Per Bench The department has filed the above appeal against the order passed by the Commissioner who allowed the credit on input services. 2. The brief facts of the case are that the respondents who are engaged in manufactureof moulded phase circuit breakers were availing the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted that the respondent unit had registered as Input Service Distributor and the credit has been availed on the ISD invoices correctly. The services impugned in the appeal have been held to be eligible input services in various decisions of the Tribunal as well as High Court. That the services were used by the respondent in or in relation to the manufacture of the final products. He also submitted that the period involved is prior to 1.4.2011 when the definition of input had wide ambit as it included the phrase activities relating to business . That the impugned order does not call for any interference. 5. Heard both sides. 6. The main ground raised by the department is that the credit has been wrongly availed by the responde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th Notification No. 26/2005-S.T.) to take a separate registration. 10. Therefore, these are the only two limitations, which are imposed in Rule 7 preventing the manufacturer from utilizing the CENVAT credit, otherwise, he is entitled to the said credit. Merely because the input service tax is paid at a particular unit and the benefit is sought to be availed at another unit, the same is not prohibited under law. It is in this context, the manufacturer is expected to register himself as a input service distributor and thereafter, he is entitled to distribution of credit of such input in the manner prescribed under law. Therefore, the order passed by the tribunal is legal and valid and does not suffer from any legal infirmity and does no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... moval, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, and security, inward transportation of inputs or capital goods and outward transportation up to the place of removal . The definition shows that many of services could be performed in places other than where the manufacturer or receiver of the service might have been located and quite often a single manufacturer may be having several branches and services can be received in several places. 8. The Tribunal in the case of United Phosphorus Ltd. Vs. Commissioner of Central Excise, Surat - 2013 (30) STR 509, has held as follows:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nnot say that he is not required to prove the eligibility or otherwise of the service tax credit once at the receiver s end which could be a branch or a factory of the distributor, no details would be available regarding the nature of service. Therefore the preliminary objection raised by the ld. Advocate has to be rejected and it has to be held that it is the responsibility of the jurisdictional officer with whom input service distributor has registered to decide the dispute regarding eligibility or otherwise of the service tax credit that the input service distributor has taken and proposes to pass on to others. 9. Following the above decisions, we find no ground to interfere with the order passed by Commissioner. The impugned order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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