9911796707
TMI Blog2024 (12) TMI 466X X X X Extracts X X X X X X X X Extracts X X X X ..... vices in question were not received by the Paharpur unit., and therefore, it cannot be said that the input services were used directly or indirectly or in or in relation to the manufacture of final goods by Paharpur unit - HELD THAT:- In appellant s own case [ 2024 (6) TMI 761 - CESTAT KOLKATA ], this Tribunal has observed that ' For the period from 01.04.2012 to 31.03.2013, the appellants have claimed that they have taken the credit for the Service Tax paid by the Head Office for the services rendered to their Paharpur unit only. Thus the conditions set w.e.f. 01.04.2012 under Rule 7 of the Cenvat Credit Rules also have been fulfilled. However, without going into the factual details to ascertain this claim of the appellant, since we ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed on the ISD invoices issued by the Mumbai office, the appellants have been taking the Cenvat credit. The Department issued Show Cause Notices for the period April 2013 to April 2015, May 2015 to March 2016 and April 2016 to June 2017 respectively alleging that the input services in question were not received by the Paharpur unit., and therefore, it cannot be said that the input services were used directly or indirectly or in or in relation to the manufacture of final goods by Paharpur unit. On the other hand, the invoice shows that the services have been used by the manufacturing units located at Mumbai and Chennai. On this ground, the Cenvat credit taken was sought to be denied and the demand of Rs.13,05,34,246/-, Rs.6,39,69,333/- and R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hough received at other places. It, therefore, appears that the services on which the CENVAT Credit has been availed of by the said assessee by wrongly considering as input service‟, are not at all input services in terms of the definition of input service as provided under Rule 2(l)ii() of the CENVAT Credit 2004. Therefore, the CENVAT Credit availed of by the assessee on the said input services appears to be not admissible under Rule 3(1) of the CENVAT Credit Rules, 2004 and hence, the said inadmissible CENVAT credit is recoverable under Rule 14 of the CENVAT Credit Rules 2004 read with Section 11A of the Central Excise Act, 1944 along with interest chargeable under Section 11AB of the Central Excise Act, 1944 read with Rule 14 of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. (c) credit of service tax attributable to service [used wholly by a unit] shall be distributed only to that unit: and [(d) credit of service tax attributable to service used by more than one unit shall be distributed pro rata on the basis of the turnover of such units during the relevant period to the total turnover of all its units, which are operational in the current year, during the said relevant period.] 15. From a careful reading of the above provisions, it cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en the credit, so distributed by the Mumbai ISD unit. They have no control over the Cenvat taken by the Mumbai Head Office on various services. It has been time and again held by various Tribunals that the recipient cannot be questioned for the eligibility or otherwise of the Cenvat availing Head Office registered under ISD. The Tribunal in the case of Rallis India Ltd. (supra) has held as under : - 4. I have considered the rival submissions. I find that the issue is limited to the refund of the service tax contained in the ISD invoices received by the appellant. The ISD invoices have been issued by ISD distributor located elsewhere and Learned C.A. pointed out that independent returns are filed for the ISD. The record of ISD has also been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dia Limited, wherein it has been held as under:- In view of the above judgment even though the service is not used in the appellant factory, but received and used in different factory of the same company, credit cannot be denied. Following the ratio of the above decision and the discussion made hereinabove, I am of the considered view that the appellant is legally entitled for the Cenvat credit. The impugned order is set aside, the appeal is allowed. 19. We find that the ratio laid down in this case law are squarely applicable to the facts of the present case. Hence we hold that the Kolkata authorities had no jurisdiction to question the eligibility of Cenvat taken by the Mumbai unit which distributed the Cenvat Credit. 20. The Ld.AR for th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
