2019 (3) TMI 2026

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..... by the assessee are contained in Rule 14 ibid. The said statutory provision mandates that irregularly availed or utilized Cenvat Credit can be recovered from the manufacturer or the provider of output service. In this case, the corporate office of the appellant is registered with the service tax department as an Input Service Distributor and distributed the Cenvat Credit in respect of service tax paid on the input services among its manufacturing units. It is not the case of the department that the appellant is either avails or utilizes the Cenvat Credit of service tax paid on the input services. Input Service Distributor neither provides any service nor engages in manufacture of excisable goods. Thus, the question of payment of service tax .....

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..... of law, denial of Cenvat Credit on this ground also is not sustainable. There are no merits in the impugned order passed by the Ld. Commissioner (Appeals) - appeal allowed.
Hon'ble Mr. S.K. Mohanty, Member (Judicial) For the Appellant : Shri Ram Sridharan , Advocate. For the Respondent : Shri Saikrishna Hatangadi, Authorized Representative. ORDER PER: S.K. MOHANTY The issue involved in all these appeals is identical and accordingly, the same are taken up for hearing together and a common order is being passed. 2. Briefly stated, the facts of the case are that the appellant's corporate office is situated at Ahura Centre, B-Wing, Mahakali Caves Road, Andheri (East), Mumbai; the appellant is registered as an Input Service Distributo .....

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..... payment of interest from an input service distributor. In this context, he has relied upon the decisions of this Tribunal in the case of Mahindra & Mahindra Ltd. Vs. CST-2017-TIOL-2364-CESTAT-MUM and Mahindra & Mahindra Ltd. Vs. CST- 2018-TIOL-1235-CESTAT-MUM. Ld. Advocate further submitted that the disputed services are confirming to the definition of input service and as such, service tax paid on those services should be available for Cenvat Credit to the assessee. He has relied upon the following judgements delivered by the judicial forum to strengthen the case of the appellant that it should be permitted for availment and utilization of the Cenvat Credit. (i) PA Pharmaceuticals & Allied Machinery V. CCE (2016-TIOL-708-CESTAT-MUM); .....

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..... vat Credit in respect of service tax paid on the input services among its manufacturing units. It is not the case of the department that the appellant is either avails or utilizes the Cenvat Credit of service tax paid on the input services. Input Service Distributor neither provides any service nor engages in manufacture of excisable goods. Thus, the question of payment of service tax or Central Excise duty on the taxable services or the manufacturing activities respectively do not arise. The provision of Rule 14 is applicable only to the manufacturer or service provider and not to the Input Service Distributor, who merely distributes the credit. Since, the provisions of Rule 14 ibid was invoked for effecting recovery of the Cenvat Credit a .....

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