2014 (8) TMI 30

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....f duty of Rs. 1,72,90,306/-, interest and penalty and M/s. Sunbell Alloys Co. of India Ltd filed the other application for waiver of pre-deposit of duty of Rs. 2,00,70,434/-, interest and penalty. 3. The M/s. Merck Specialities availed credit in respect of the services such as : (i)      Car-hire charges; (ii)    Outward Transportation/Clearing and Forwarding Charges/Courier; (iii)   Manpower Recruitment; (iv)   Air Travel Fares (v)     Maintenance and Repair; (vi)   Custom House Agent (Export); (vii)  Event Management The present applicant availed the credit in respect of s....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....inable. It is also submitted that the concept of Value Added Tax is to avoid cascading effect and the business should not suffer. 7. The learned Jt. CDR for the Revenue submitted that the applicants are independent manufacturers and being independent manufacturers were paying Central Excise duty on the goods manufactured by them. The learned Jt. CDR relies on the terms and conditions of the agreement whereby the applicants entered into agreement with M/s. Merck as independent manufacturer of the goods. As applicants are manufacturing and paying Central Excise duty, therefore, it cannot be said that the office of M/s. Merck is the office of the applicants or the Head Office of the applicants can distribute the Service Tax to the manu....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... M/s. Merck. The applicants are independent manufacturers and are paying Central Excise duty being independent manufacturer. As per the provisions of Rule 7 of the Cenvat Credit Rules, 2004 the input service distributor may distribute the Cenvat Credit in respect of Service Tax paid on the input service to its manufacturing units. A reading of the above provision of Rule 7 of the Cenvat Credit Rules, 2004 it is clear that input service distributor can distribute Service Tax paid on the input service to its manufacturing units. In the facts and circumstances of the present case, it cannot be said the applicants are manufacturing unit of M/s. Merck. Further, we find that as per the definition of 'input service distributor' as provided under C....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ction 35(F). One is undue hardship. This is a matter within the special knowledge of the applicant for waiver and has to be established by him. A mere assertion about undue hardship would not be sufficient. It was noted by this Court in S. Vasudeva v. State of Karnataka and Ors. (A.I.R. 1994 S.C. 923) that under Indian conditions expression "Undue hardship" is normally related to economic hardship. "Undue" which means something which is not merited by the conduct of the claimant, or is very much disproportionate to it. Undue hardship is caused when the hardship is not warranted by the circumstances. 13. For a hardship to be 'undue' it must be shown that the particular burden to have to observe or perform the requirement is out of pr....