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TMI Blog2020 (1) TMI 369X X X X Extracts X X X X X X X X Extracts X X X X ..... ground only. In the impugned order, the learned Commissioner (Appeals) has made an observation that Parwanoo unit might be availing exemption under Notification No. 50/2003-CE dt. 10.06.2003. The said observation is factually incorrect as the appellant has produced ER-1 Returns for their Parwanoo unit before me, wherein it has been shown that the appellant is paying duty on their manufactured products. There are no merit in the impugned order, the same is set aside - Appeal allowed - decided in favor of appellant. - Excise Appeal No. 60859 of 2019 - FINAL ORDER NO. 61130/2019 - Dated:- 2-12-2019 - HON BLE MR. ASHOK JINDAL, MEMBER (JUDICIAL) Present for the Appellant: Ms. Krati Somani, Advocate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vs. M/s Oerlikon Balzers Coating India Pvt Ltd 2019- VIL-34-BOM-ST. It is also submitted that the whole exercise is of revenue neutral as all the units are duty paying units, therefore, whatever credit could have been distributed to them, they are entitled to take Cenvat credit. It is also submitted that in the impugned order, the learned Commissioner (Appeals) has opined that the appellant is availing exemption under Notification No.50/2003-CE dt. 10.06.2003 at their Parwanoo unit, therefore, Cenvat credit pertaining to Parwanoo unit is not available to the appellant, but it is the contention that the Parwanoo unit is also duty paying unit, therefore, the observation made by the learned Commissioner (Appeals) in the impugned order are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice 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 condition, namely : (a) The credit distributed against a document referred to in Rule 9 does not exceed the amount of service tax paid thereon; or (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. Rule 7 Post 2012 - amendment RULE 7. Manner of distribution of credit by input service distributor - The input service distributor may dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or not. In fact, our attention is invited to Rule 7 of the Cenvat Credit Rules, 2004 as substituted w.e.f. 1-4-2016 which has made it mandatory for distribution of input services to the various units providing output services. This is evidence by the use of words shall distribute the Cenvat credit in the substituted Rule 7 as Cenvat Credit Rules 2004 w.e.f. 1-4-2016. Therefore, 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. 10. In any event, the Tribunal, on facts found that the entire exercise would be revenue neutral. This is so as the distribution of C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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