https://www.taxtmi.com/caselaws?id=75868 CESTAT held that, under Rule 7 of the CENVAT Credit Rules, 2004 read with the clarificatory circular dated 23-8-2007, only two restrictions apply to distribution of service tax credit: (i) credit cannot exceed the tax actually paid, and (ii) credit cannot relate to exempted goods or services. No rule restricts distribution based on which specific unit used the input services. The Department's attempt to deny credit distributed to the Malur Unit on the ground that services were used by the Cuttack Unit was therefore unsustainable. The restrictive order of the lower appellate authority was set aside and the appeals were allowed. en-us Fri, 09 Oct 2009 00:00:00 +0530 Fri, 21 Nov 2025 16:57:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=75868 CESTAT held that, under Rule 7 of the CENVAT Credit Rules, 2004 read with the clarificatory circular dated 23-8-2007, only two restrictions apply to distribution of service tax credit: (i) credit cannot exceed the tax actually paid, and (ii) credit cannot relate to exempted goods or services. No rule restricts distribution based on which specific unit used the input services. The Department's attempt to deny credit distributed to the Malur Unit on the ground that services were used by the Cuttack Unit was therefore unsustainable. The restrictive order of the lower appellate authority was set aside and the appeals were allowed. Case-Laws Service Tax Fri, 09 Oct 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=75868