2019 (3) TMI 2026

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..... ase 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 Distributor with the service tax department and distributed the Cenvat Credit to its various manufacturing units. During the course of audit conducted under EA-2000, the department observed that the appellant had taken and distributed Cenvat Credit in respect of the services viz. Air Travel Agency, Membership & Club Association, Rent-a-cab, Event Management and Car Insurance, which are not confirming to the definition of 'Input Service' provided under Rule 2(l)of the Cenvat Credit Rules, 2004. Accordingly, the department initiated show cause proceedings against the ap .....

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..... he 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); (ii) Qualcomm India Pvt. Ltd. V. CST (2016 (42) STR 886 (Tri-Mum.); (iii) Manhattan Associates (India) Development Centre Pvt. Ltd. Vs. CST (2016-TIOL-03083-CESTAT-BANG); (iv) Reliance Industries Ltd. V CCE & ST (2016 (45) STR 383 (Tri-Mum)); (v) CST Vs. WNS Global Services (2016 (44) STR 454 (Tri.Mum)); (vi) Deloitte Support Services India Pvt. Ltd. Vs. CCE (2017 (5) GSTL 393 (Tri-Bang). 4. On the other hand, the Ld. AR appearing for the Revenue reiterated the findings recorded in the impugned order. 5. Heard both sides and perused the records. 6 .....

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..... vice 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 amount from the appellant, such proceedings initiated by the department are not in conformity with the Cenvat statute and accordingly, both the orders passed by the lower authorities cannot be sustained. This Tribunal in the case of Mahindra & Mahindra Ltd. (supra) has held that Rule 14 ibid can be made applicable only on the person who avails or utilizes the Cenvat Credit wrongly and the show cause notice cannot be issued to the Input Service Distributor for recovery of Cenvat Credit. 8. The above disputed services were used/utilized by the appellant for ac .....

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