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TMI Blog2018 (12) TMI 1300X X X X Extracts X X X X X X X X Extracts X X X X ..... ts which are providing output services. This is evident from the use of word may distribute the CENVAT credit is found in Rule 7 both prior and also post 2012. Thus, from the reading of the Rules, the option was available to the assessee whether to distribute the CENVAT credit or not - on plain reading of Rule 7 as existing both pre and post amendment 2012 covering period involved in these proceedings, the respondent - assessee was entitled to utilize the CENVAT credit available at its Pune unit. The Tribunal, on facts found that the entire exercise would be revenue neutral. This is so as the distribution of Cenvat Credit to the various units would result lesser service tax being paid by cash on their activity of coating as they would ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ai, Jamshedpur etc. It is engaged in the activity of providing IT services, intellectual property right services, renting of immovable property services and transport of goods by road services and also coating services. It is coating service which is the subject of the appeal and the same is subject to tax under the head 'Business Auxiliary Services'. 4. During the period October 2009 to March 2014, the Pune unit of the respondent - assessee received Intellectual Property Right Services' and 'Information Technology Software Services. The service tax liability on the above two services was discharged by the respondent-assessee's Pune unit on reverse charge mechanism. Thereafter, it took the cenvat credit on the above a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, reducing the service tax payable by the other units on the service of coating. The impugned order hold that there is no dispute that service tax has been paid on the services rendered and the question is only of utilization of credit. 7. Mr. Jetly, in support of the appeal, submits that in terms of Rule 7 of the CENVAT Credit Rules as existing pre post 2012 requires the respondent - assessee to distribute the credit of the input services amongst its various units. Our attention is drawn to Rule 7 of the CENVAT Credit Rules prior to amendment and also to Rule 7 post amendment in 2012 of Cenvat Credit Rules which introduced in the context of present facts sub-clause (d) therein. Thus, it is submitted by the Revenue that it was obligat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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; (c) credit of service tax attributable to service used wholly in a unit shall be distributed to the unit; and (d) credit of service tax attributable to service used in more than one unit shall be distributed pro rate on the basis of the turnover during the relevant period of the concerned unit to the sum total of the turnover of all the units to which the service relates during the same period. 9. From reading of the above Rules both pre and post amendment, it would be noticed that both provisions give an option to the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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