2011 (4) TMI 560

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....i N. KUMAR AND Shri RAVI MALIMATH, JJ. Represented By: Shri T.M. Venkata Reddy for the Appellant. JUDGMENT Ravi Malimath, J. - This appeal is by the revenue, being aggrieved by the order of the Tribunal, holding that there are no restrictions in. the Cenvat Credit Rules, as applied by the Department, in limiting the distribution of service tax credit made in one unit and availed of ....

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.... wherein the appeal was allowed by setting aside the order in original by confirming the demand, interest and penalty. Aggrieved by the same, the assessee preferred an appeal to the Tribunal. The Tribunal on a combined reading of Rule 7 and the clarificatory circular dated 23.08.2007 held that there are only two restrictions regarding the distribution of the credit. That the first restriction is t....

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....pertains to advertisement of their product 'Sabena Dish Wash Bar' which was manufactured by their Cuttack Unit and not by the unit at Malur. Therefore, the assessee was dealing with the very same product. Rule 7 of the Cenvat Credit Rules governs procedure/manner of distribution of credit by input service distributor by imposing two conditions therein, which are as follows: "a.  Credit dis....