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TMI Blog2018 (5) TMI 777X X X X Extracts X X X X X X X X Extracts X X X X ..... t service distributor from availing Cenvat credit unless and until such registration was applied and granted. The decision in Dashion Ltd. has been accepted by the Department vide its Circular dated 16.02.2018 referred by the Ld. Counsel for the appellants. In such an event, the demand cannot sustain. Appeal allowed - decided in favor of appellant. X X X X Extracts X X X X X X X X Extracts X X X X ..... er res integra. He placed reliance on the decision of the Hon'ble High Court of Gujarat in CCE Vs. Dashion Ltd. - 2015 (41) STR 884 (Guj.) and in the case of CCE Vs. National Engineering Industries Ltd. - 2016 (42) STR 945 (Raj.), that both these decisions have been accepted by the department as clarified vide Sl.No. 2 (part 1) of the Circular No. 1063/2/2018-CX dated 16.02.2018. He also placed reliance on the decision in the case of CCE Vs. Ecof Industries Ltd. - 2011 (23) STR 337 (Kar.). With regard to the clearances of the manufactured goods by SEZ units for exports, without payment of excise duty, the Ld. Counsel submitted that the same cannot be treated as clearances of exempted goods. Similarly, the provision of services from STPI, wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; (b) credit of service tax attributable to service [used by one or more units] exclusively engaged in manufacture of exempted goods or providing of exempted service shall not be distributed;" 5.1 It was only later on that additional condition by way of Clause (d) to Rule 7 was added, which reads as under : - "credit of service tax attributable to service used by more than one unit shall be distributed pro rata on the basis of the turnover of such units during the relevant period to the total turnover of all its units, which are operational in the current year, during the said relevant period." 6. The first objection of the Department therefore that the credit from one unit was utilized for the purpose of duty liability of other uni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctness, the Tribunal, in our opinion, rightly did not disentitle the assessee from the entire Cenvat credit availed for payment of duty. Question No. 1 therefore shall have to be answered in favour of the respondent and against the assessee."
The decision in Dashion Ltd. has been accepted by the Department vide its Circular dated 16.02.2018 referred by the Ld. Counsel for the appellants. In such an event, the demand cannot sustain.
6. Following the decision in the case of Dashion Ltd., we are of the view that the impugned order requires to be set aside, which we hereby do. In the result, the appeal is allowed with consequential reliefs, if any.
( Operative part of the Order pronounced in the open Court ) X X X X Extracts X X X X X X X X Extracts X X X X
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