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TMI Blog2019 (6) TMI 855X X X X Extracts X X X X X X X X Extracts X X X X ..... harge of Excise Duty liability. They also avail the benefit of cenvat credit under Cenvat Credit Rules, 2004. During the period October 2006 to March 2012, they had availed cenvat credit on the basis of Inputs Service Distributor (ISD) invoices issued by their head office under Rule 7 of CCR 2004. The head office of the firm had distributed the credit among other different units in proportion to the overheads incurred by different units. A show cause notice was issued to the assessee who is a recipient of the ISD invoices alleging that the input service distributor had wrongly allocated the excess cenvat credit by way of ISD invoices to the assessee by not apportioning the cenvat credit among different units in proportion to the sales turno ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the cenvat credit amount cannot be disturbed at the hands of the recipient [CCE Vs MDS Switchgear Ltd. - 2008 (229) ELT485 (SC)]. Therefore, Commissioner of Central Excise, Chennai-III having jurisdiction over the assessee had no locus standi to issue a show cause notice with respect to an act committed by their head office. Thus, not only has the SCN been issued to the wrong assessee but it has also been issued without any authority. 4. On limitation, it is his contention that the extended period of limitation was invoked in the SCN on the ground that the basis for distribution of credit was not disclosed. He would submit that there was no requirement under the law to disclose the basis for distribution of credit which, in any case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s follows : "Rule 7. Manner of distribution of credit by input services distributor. ― The input service distributor may distribute the CENVAT credit in respect of the service tax paid on the input service to its manufacturing units or units providing output service, subject to the following conditions, namely:― (a) the credit distributed against a document referred to in rule 9 does not exceed the amount of service tax paid thereon. (b) credit of service tax attributable to service used in a unit exclusively engaged in manufacture of exempted goods or providing of exempted services shall not be distributed; (c) credit of servicetax attributable to service used wholly in a unit shall be distributed only to that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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