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TMI Blog2019 (4) TMI 475X X X X Extracts X X X X X X X X Extracts X X X X ..... y also, the show cause notice is bad in law - appeal allowed - decided in favor of appellant. - Excise Appeal No. 51535 of 2018-SM - A/50405/2019-SM[BR] - Dated:- 28-2-2019 - Anil Choudhary, Member (Judicial) Present for the Appellant: Shri Anurag Kapur, Advocate Present for the Respondent: Sh. P. Juneja, Authorised Representative ORDER Per: Anil Choudhary: The issue is whether the appellant a Public Sector Undertaking, has violated the provisions of Rule 7(d) of Cenvat Credit Rules, 2004 by distributing the cenvat credit of their Central Sales office an ISD and also by their Head Office at ISD, wherein 100% of the cenvat credit is transferred to the appellant unit located at Debari based zinc smelter. The H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there is no legality in the distribution of the credit. Further, clause (b) is not attracted so far CSA Debari is concerned. So far the Head Office is concerned, in view of the intention of the legislature in using the word may for manner of distribution, is only a suggestion and not binding on the appellant. Further, the Revenue states Rule 7(c) w.e.f. 01.04.2016, vide Notification No. 13/2016-CE(NT), wherein the may was replaced with the word shall , thus, making it mandatory w.e.f. 01.04.2016, but distributed the cenvat credit in the manner specified in Rule 7 of Cenvat Credit Rules. Learned Counsel further relied on the decision of Bombay High Court in The Commissioner, Central Tax Pune-I Commissionerate vs. M/s Oerlikon Blazers C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y substantial question of law as the entire exercise would be revenue neutral. Thus, making the entire exercise academic. Therefore, the question is not entertained. 3. Learned Departmental Representative for the Revenue relied on the impugned order and draws my attention to the finding of the Commissioner (Appeals) wherein he observed that credit of service tax attributable to services 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 the units to which the service relates during the same period. Further, Commissioner in regard to revenue neutrality has observed that the said contention is not acceptable that un ..... X X X X Extracts X X X X X X X X Extracts X X X X
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