9911796707
TMI Blog2023 (6) TMI 554X X X X Extracts X X X X X X X X Extracts X X X X ..... attributable to common input service utilized in its Die Lube Unit as per the provision of Rule 7 of Cenvat Credit Rules, 2004? 3. The appellant is engaged in manufacturing of excisable goods viz. Silicon Carbide Crucibles, Clay Graphite Crucibles and spout cement etc. at their factory at Plot No. B-11, MIDC, Walgunj, Aurangabad. They started manufacturing a new product Die Lube at their another unit at different premises with separate Central Excise registration for this product and during the period 2012-13 upto August, 2014 they had availed Cenvat credit of common services such as Management, Software, Accounting, Auditing, Banking, Trade mark, Security, SAP software system used for manufacture and clearance of their final product of D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id not have a registration as an ISD, the availment of Cenvat credit cannot be denied. As an alternative submission learned counsel submits that the present case is governed by revenue neutrality inasmuch the Die Lube unit would otherwise be eligible for the credit that was availed by the appellant and therefore there was no loss to the revenue. Per contra learned authorised representative on behalf of revenue reiterated the findings recorded in the impugned order and prayed for rejection of appeal. 5. I have heard learned counsel for the appellant and learned Authorised Representative for the revenue and perused the case records including the synopsis/written submission and case laws placed on record. Somewhat similar issue came up for co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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 again ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... " 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 Cenvat credit to the various units would result lesser service tax being paid by cash on their activity of coating as they would have utilized the Cenvat credit available for distribution. 11. In this view of the matter, the question of law as proposed does not give rise to any substantial question of law as th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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