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TMI Blog2024 (11) TMI 201X X X X Extracts X X X X X X X X Extracts X X X X ..... t is noted that the show cause notice on the similar issue were also issued to the appellant is other units situated at Tamil Nadu and Uttar Pradesh. The matter have already been decided by the Division Bench of this Tribunal in M/S COVESTRO (INDIA) PVT. LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE [ 2024 (3) TMI 1367 - CESTAT ALLAHABAD] wherein, the appeal of the appellant has been allowed by this Tribunal. The matter is no longer res Integra as the issue has already been decided by this Tribunal in the appellant s own case on the same issue where it was held that 'It is found that exactly the same issue in case of Appellant s Tiruchirapalli unit has been decided by the Chennai Bench vide Final Order [ 2023 (2) TMI 7 - CESTAT CHENNAI ], ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial records of the appellant s head quarters at Than, it has been noticed by the department that their head quarter office has distributed the input service credit amounts to three units located at :- i. Ankleshwar, Dist. Bharuch, (Gujarat Plant) ii. Semmankuppan (Tamil Nadu plant) iii. Surajpur, Guatam Budha Nagar (Uttar Pradesh plant) 3. The Department is of view that since the appellants Head Office is who providing output service, the Head Office of the appellant has not proportioned input credit going for providing output service at cleared and therefore distribute the input service credit amounts three units in excess. Without including the output service provided by their head quarters. The department entertained the view that they h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect or otherwise. 4.3 We find that exactly the same issue in case of Appellant s Tiruchirapalli unit has been decided by the Chennai Bench vide Final Order No 40021/2023 dated 31.03.2023 [2023-TIOL112-CESTAT-MAD], observing as follows 7.1 The lower authorities have pressed into service Rules 3 and 7 of the CCR, 2004 to disallow and recover the CENVAT Credit availed by the recipientappellant unit, but however, when the audit took place at the Head Office unit, which is the ISD unit, nothing is placed on record as to whether any Show Cause Notice was issued to the said unit which chose to distribute (to which Rule 7 of the CCR applies) alleging that the distribution by the ISD was wrong. There is also nothing brought out on record if the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Pune unit of the appellant distributes this credit to various other units on pro rata basis Cenvat credit was available to the other units also and it is also not in dispute that during the period the other units were also discharging service tax liability in cash also. Therefore, the entire exercise would have been revenue neutral. Hence we hold that rejecting the claim of Cenvat credit of the appellant is unsustainable and liable to be set aside and we do so. The Hon ble Bombay High Court, thereafter, vide its judgement against the above order of CESTAT Mumbai [2019 (366) E.L.T. 624 (Bom.)], has upheld the above order of the Tribunal and the Hon ble Court has also looked into the amended Rule 7 of the CCR. 8. Further, I also find that in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... artment was aware of both sides of the coin, that is to say, they came to know of input service distribution by the ISD unit in the particular manner when they conducted audit there. This means that they are aware of the distribution of input credit in the particular manner. When this is the situation, then there is no question of suppression, much less of any receipt of the input credit by the appellant. 11. In view of the above discussions, I am of the clear view that the disallowance of CENVAT Credit in the hands of the recipient-appellant, as confirmed in the impugned order, is incorrect and not sustainable in the eye of law, for which reason the impugned order is set aside. 4.5 In view of the decision of the Chennai Bench which squarel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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