9911796707
TMI Blog2024 (8) TMI 150X X X X Extracts X X X X X X X X Extracts X X X X ..... on during the impugned period. The appellant was eligible for availing the credit and the demand for duty, interest and imposition of penalty in the impugned order cannot be sustained. The impugned order hence merits to be set aside and is so ordered - appeal allowed. - SHRI P. DINESHA, MEMBER (JUDICIAL) AND SHRI M. AJIT KUMAR, MEMBER (TECHNICAL) Smt. Radhika Chandrasekar, Advocate for the Appellant Shri M. Selvakumar, Authorized Representative for the Respondent ORDER This appeal is filed by the appellant aggrieved by the Order in Original No. 25/2014 dated 8.9.2014 passed by the Commissioner of Central Excise, Chennai. 2. Brief facts of the case are that the appellant are manufacturers of goods like wiper motor, link assembly and fan mo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learned counsel appeared for the appellant and Shri M. Selvakumar, learned Authorized Representative appeared for the respondent-department. 3.1 The learned counsel for the appellant has challenged the OIO primarily on the ground that Rule 7(d) which specifies that credit of service attributable to service used in more than one unit shall be distributed pro-rata on the basis of the turnover in the relevant period was not in effect during the period of dispute. The position has been clarified by a Division Bench of the Hon'ble Bombay High Court in the case Commissioner of C.T, Pune-I Vs. Oerlikon Balzers Coating India Pvt Ltd [2019 (366) ELT 624 (Bom.)] which held that both the Rule as it existed prior to amendment in 2012 and post amend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f coating. 8 . It would be appropriate that we reproduce Rule 7 as existing prior to 2012 and post 2012 which is as under :- Rule 7 as Existing Prior to 2012 :- 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 engaged in manufacture of exempted goods or providing of exempted services shall not be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lable to the assessee whether to distribute the Cenvat credit 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. 5. In the light of the above judgment we do not find any impediment in the appellant availin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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