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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 ..... es, Chartered Accountant Services etc. These services were common to all the four units of the appellant company. The invoices were raised by the service providers on the appellant's factory ie., Ambattur. The appellant paid the service tax and availed Cenvat credit on the same. The department was of the view that the appellant has not taken input service distributor registration and that appellant ought to have distributed the credit proportionate to the turn-over of the other units. Thus, SCN was issued alleging irregular availment of credit proposing to recover the same along with interest and for imposing penalties for the period April, 20008 to March, 2010. After due process of law, the Commissioner confirmed the demands along with int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Hon'ble High Court of Punjab and Haryana in the case of Alpha Drugs India Ltd. Vs. CCE - 2002 (140) ELT 43 (P & H). It was also argued by him that the entire exercise is revenue neutral. The department does not dispute that the appellant is eligible for credit. The only allegation is that the procedural requirement of taking ISD registration and proportionate distribution was not done. That there is no revenue loss to the Government and on this ground also the demand is not sustainable. 3. The Ld. AR Shri R. Subramaniyam, AC, supported the findings in the impugned order. 4. Heard both sides. 5. The demand is confirmed on the ground that the appellant has not obtained ISD registration and has not distributed the Cenvat credit propo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f this nature flowing from Rule 7 of the Rules of 2004. In fact, the Tribunal has seen entire situation as a Revenue neutral, since as pointed out by the assessee, it had availed only 20% of the credit for payment of service tax and the balance was paid in cash. 7. The second objection of the Revenue as noted was with respect of non-registration of the unit as input service distributor. It is true that the Government had framed Rules of 2005 for registration of input service distributors, who would have to make application to the jurisdictional Superintendent of Central Excise in terms of Rule 3 thereof. Sub-rule (2) of Rule 3 further required any provider of taxable service whose aggregate value of taxable service exceeds certain limit t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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