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TMI Blog2024 (11) TMI 875X X X X Extracts X X X X X X X X Extracts X X X X ..... mined by the Larger Bench of this Tribunal and the penalty in the case of M/s. Krishna Food Products [ 2021 (5) TMI 906 - CESTAT NEW DELHI] wherein this Tribunal observed ' A narrow and a literal interpretation of the phase its manufacturing units should, therefore, be avoided, more particularly when the Registration Exemption Notification provides for authorisation for manufacture of goods on behalf of the principal manufacturer. There appears to be no good reason as to why CENVAT credits should not be allowed to be distributed to a job worker in the facts and circumstances of the present case.' The appellant is entitled to take Cenvat credit of Rs.10,03,635/-. Therefore, the said Cenvat credit is allowed. Availment of Cenvat credi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bear invoice number, therefore, they are not entitled to take Cenvat credt on the said invoice. 2. Cenvat credit of Rs.10,03,635/- sought to be denied on the ground that the Cenvat credit distributed by the ISD is not related to the manufacturing activity of the appellant, therefore, the appellant is not entitled to take Cenvat credit. The show cause notice was issued by invoking extended period of limitation and the matter was contested by the appellant before the authorities below confirmed the demand proposed in the show cause notice along with interest and the penalty was also imposed. Aggrieved from the said order, the appellant is before me. 3. Learned counsel appearing on behalf of the appellant submits that for denial of Cenvat cre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... NEW DELHI. Therefore, it is her prayer that the Cenvat credit cannot be denied on the Cenvat credit distributed by the ISD. 5. On the other hand, learned Authorized Representative supported the impugned order and submitted that the appellant has not provided the calculation sheet for reversal of Cevat credit, the same is required to be verified by the adjudicating authority. With regard to denial of Cenvat credit on account of not mentioning the invoice number on invoice, he agreed that invoice provided by the appellant was bearing invoice number, therefore, he did not disputed the availment of the said Cenvat credit of Rs.32,149/-. With regard to denial of Cenvat credit of Rs.10,03,635/-, it is his contention that as per Rule 7 of the Cenv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m a part of the assessable value on which excise duty is charged. This would include certain services which are received prior to commencement of manufacture but the value of which gets absorbed in the value of goods. As regards services received after the clearance of the goods from the factory, the credit would be extended on services received upto the stage of place of removal (as per section 4 of Central Excise Act). In addition to this, services like advertising, market research etc. which are not directly related to manufacture but are related to the sale of manufactured goods would also be permitted for credit. 33. A reading of the aforesaid press release shows that the intention behind the framing of the Credit Rules was to allow cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the cost of various services availed forms part of the assessable value of the goods manufactured and sold, there is no reason to deny CENVAT credit of duty and taxes paid on various inputs/ input services availed. The relevant portion of the judgment is reproduced below: 7.5 The principle of law that the services which form a part of the assessable value on which excise duty is discharged, would be available as Cenvat credit has also been accepted by the Hon'ble Karnataka High Court in the Case of CCE v. Milipore India P. Ltd. reported on 2012 (26) S.T.R. 514 wherein, it was held that if service tax is paid in respect of any of the service which for a part of the cost of the final product, certainly the assessee would be entitled to Ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice, therefore, the said Cenvat credit is correctly taken by the appellant. Accordingly, Cenvat credit of Rs.32,149/- is allowed to the appellant. 10. With regard to availment of Cenvat credit on packing material of Rs.39,159/-, it is the contention of the appellant that they have reversed proportionate Cenvat credit attributable to exempted final product and produce a table thereof. I hold that the reversal of proportionate Cenvat credit is sufficient for the appellant to avail Cenvat credit of Rs.39,159/-. If there is any discrepancy in the availment of Cenvat credit, the adjudicating authority shall verify from the records and if some calculation error is there, the appellant shall reverse the said proportionate Cenvat credit. In view of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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