TaxTMI 
TaxTMI 
2014 (8) TMI 530
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....report compliance on 5.3.2014. Now, the applicant filed this application for modification of stay order. 2. The learned Advocate on behalf of the applicant submits that the facts of the case were not correctly recorded in the finding of the said stay order. It is submitted that the applicant made a submission before the Tribunal that the demand was raised in the show cause notice for adopting a wrong method for distribution of credit. He submits that the Tribunal recorded that "Input Service Distributor" (ISD) included the overhead expenses of the exempted units in their total overhead expenses of distribution methods. It is submitted that this issue was not alleged in the show cause notice as well as in the adjudication order. Today, he p....
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....o reproduce the relevant portion of stay order as under:- 6. Rule 2 of Cenvat Credit Rules, 2004 defines "input service" as any service used by a provider of taxable service for providing output service or used by manufacturer in the manufacture of final products. Rule 6 of the said Rules provides a condition that cenvat credit shall not be allowed on the inputs or input service used in or in relation to the manufacture of exempted goods. Clause (b) of Rule 7 of the said Rules make it clear that while distributing the credit by input service distributor, credit of service tax attributable to the units exclusively engaged in manufacture of exempted goods shall not be distributed. On close reading of these rules, it is see....
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.... The submission of learned advocate regarding the extended period of limitation would be examined at the time of appeal hearing at length. 5. There is an allegation in the show cause notice that Input Service Distributor is distributing a substantial portion of the credit to the applicant using the percentage of overhead expenses in the total expenses as a template. It has further been alleged that the distribution of service tax by ISD is in violation of Rule 7(b) of CENVAT Credit Rules, 2004. On perusal of Stay Order, we find that after considering the facts and law of the case, the Tribunal, prima facie, found that he applicant violated Rule 7(b) of the Rules, 2004 as alleged in the show-cause notice. So, we do find any force in the sub....