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TMI Blog2018 (5) TMI 660X X X X Extracts X X X X X X X X Extracts X X X X ..... they existed during the period by not distributing the credit of service tax for common services between two Units - demand do not sustain - appeal allowed - decided in favor of appellant. - E/30112/2018-SM - A/30471/2018 - Dated:- 24-4-2018 - MR P. VENKATA SUBBA RAOI MEMBER (TECHNICAL) Mr. P. ROSI REDDY, Adv for the Appellant. Mr ARUN KUMAR, A.R., for the Respondent. 2. Appellant has two units, manufacturing cables and had availed common services. The service tax paid on the common services were fully credited to their CENVAT account in Unit-I and none to Unit-II. A show cause notice was issued referring to Rule 7 (d) of the CENVAT Credit Rules 2004 stating that the assessee should have distributed the credit on pro ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sen not to distribute this particular credit. The assessee also argued that both the units were under the same management, and both were paying duty through CENVAT credit and through PLA during the period. Therefore there was no gain to the assessee and the Entire action was revenue neutral. Whether the credit was taken in Unit-I or Unit-Il the effect to the assessee as well as to the department would have been the same. Since revenue neutrality is an accepted principle, extended period can not be invoked and neither can penalty be imposed on them. The assessee relied upon the case of Greaves Cotton Ltd Vs CCE Chennai- [2015(37) STR 395 (Tri-Che)]. 4. Learned DR vehemently opposed these arguments. He submitted that Clause (d) of Ru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he input service to its manufacturing units or units providing output service, su12ject to the following condition, namely: - (a) the credit distributed against a document referred to in rule 9 does not exceed the amount service tax paid thereon: or (b) credit of service lax attributable to service used in a unit exclusively engaged ill exempted goods or of exempted services shall not be distributed c)credit of service 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 during the relevant period of the concerned unit to the sum total of the turnover of all ..... X X X X Extracts X X X X X X X X Extracts X X X X
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