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TMI Blog2021 (9) TMI 1198X X X X Extracts X X X X X X X X Extracts X X X X ..... edit Rules as they existed during the period by not distributing the credit of Service Tax for common services between two Units. It is settled that even though there is a provision for proportionate distribution of Cenvat Credit Rule 7(d) of Cenvat Credit Rule, 2004 during the relevant period but as per the interpretation it was held that since the word may was there in the Rule which was substituted with word shall from the amendment in 2006, it was option for the Assessee either to avail the entire credit in one unit or distribute the same proportionately to different unit, therefore even if the appellant have availed the Cenvat Credit in respect of common input service in one unit only, the same is not in correct or illegal. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... kon Balzers Coating India Pvt Ltd- 2019 (366) ELT 624 (Bom.) Gloster Cables Ltd- 2018 (363) ELT 1197 (Tri.HYD) Doshion Ltd- 2013 (288) ELT 291(Tri.Ahd) Dashion Ltd -2016 (41) STR 884 (Guj) Greaves Cotton Ltd- 2015(37) STR 395 (Tri. Chennai) Raymond Ltd-2017 (47) STR 142 (Tri-Del.) Rajasthan Patrika Pvt. Ltd-2020 (34) GSTL 226 (Tri-Del.) Indeos ABS Ltd-2010 (254) ELT 628 (Guj.) Hindustan Zinc Ltd-2019 (370) ELT 1582 (Tri.-Del) Mahindra Mahindra Ltd.-2019 (368) ELT 105 (Tri. Mum.) Nirlon Ltd-2015 (320) ELT 22 (SC.) Continental Foundation JT. Venture-2007 (216) ELT 177 (SC.) 3. Shri J.A. Patel, learned Superintendent (Authorized Representative) appearing on behalf of the revenue reiterates the finding of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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 eng ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lved in these proceedings, the respondent - assessee was entitled to utilize the Cenvat credit available at its Pune unit. The aforesaid judgment was followed by the tribunal in the judgment- Hindustan Zinc Ltd-2019 (370) ELT 1582 (Tri.-Del) wherein the following order was passed:- 6 . We find force in the appellant s submission that a similar dispute has been decided in its favour through Final Order No. 50405/2019, dated 28-2-2019 passed in the appellant s own case, Hindustan Zinc Limited v. C.C.E. by following the ratio of the Hon ble Bombay High Court s decision in C.C.E. v. M/s. Oerlikon Blazers Coating India Pvt. Limited (supra). The relevant part of the order dated 28-2-2019 is reproduced below : 4. Having considered th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ices shall not be distributed; (c) credit of service tax attributable to service used wholly in a unit shall be distributed only to that unit; and (d) credit of service tax attributable to service 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. 7 . It is evident from the plain reading of Rule 7 that the service distributor may distribute the CENVAT credit in respect of service tax paid on the input service to its manufacturing units subject to certain conditions. If he chooses to distribute, he will have to follow all the conditions laid down ..... X X X X Extracts X X X X X X X X Extracts X X X X
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