https://www.taxtmi.com/caselaws?id=407487 A registered Input Service Distributor under the Cenvat Credit Rules, 2004 may validly distribute service tax credit to manufacturing units, provided the distribution stays within Rule 7 limits and is not made to a unit exclusively engaged in exempted goods or services. The Karnataka HC treated the tobacco division as part of the assessee rather than a separate legal entity, and held that the credit was lawfully availed. It also noted that the Revenue had accepted the same entitlement in later periods, so it could not take a contrary stand in this matter. The demand of Cenvat credit, interest and penalty was therefore unsustainable. en-us Thu, 22 Apr 2021 00:00:00 +0530 Mon, 27 Sep 2021 16:43:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=407487 A registered Input Service Distributor under the Cenvat Credit Rules, 2004 may validly distribute service tax credit to manufacturing units, provided the distribution stays within Rule 7 limits and is not made to a unit exclusively engaged in exempted goods or services. The Karnataka HC treated the tobacco division as part of the assessee rather than a separate legal entity, and held that the credit was lawfully availed. It also noted that the Revenue had accepted the same entitlement in later periods, so it could not take a contrary stand in this matter. The demand of Cenvat credit, interest and penalty was therefore unsustainable. Case-Laws Central Excise Thu, 22 Apr 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=407487