https://www.taxtmi.com/caselaws?id=754508 The HC ruled in favor of the taxpayer regarding CENVAT credit distribution between registered units of a company. The court held that once a manufacturer registers as an input service distributor under Rule 7 of CENVAT Credit Rules, 2004, it can distribute service tax credits between its various units subject only to specified limitations. The court emphasized that company divisions/units are not separate legal entities and rejected the revenue's argument that credits cannot be transferred between units. The HC also noted that show cause notices cannot be issued for credits that were reversed or paid back before notice issuance. Revenue's appeal was dismissed. en-us Mon, 11 Dec 2023 00:00:00 +0530 Wed, 26 Jun 2024 08:29:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=754508 The HC ruled in favor of the taxpayer regarding CENVAT credit distribution between registered units of a company. The court held that once a manufacturer registers as an input service distributor under Rule 7 of CENVAT Credit Rules, 2004, it can distribute service tax credits between its various units subject only to specified limitations. The court emphasized that company divisions/units are not separate legal entities and rejected the revenue's argument that credits cannot be transferred between units. The HC also noted that show cause notices cannot be issued for credits that were reversed or paid back before notice issuance. Revenue's appeal was dismissed. Case-Laws Service Tax Mon, 11 Dec 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=754508