TaxTMI 
TaxTMI 
2015 (9) TMI 1468
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....in job work activities. Unit II has rendered certain services viz. construction and maintenance/repair service. But the credit attributable to such service was taken in the books of accounts of Unit - I. Taking of such credit in the books of Unit I was disputed by Central Excise Department on the ground that though the service tax invoices are in the name of unit II but the credit has been taken in the books of Unit I, which is not in conformity with the cenvat statute. The proceedings initiated in this regard culminated in the adjudication dated 19.01.2012, wherein cenvat credit taken in the books of Unit I to the tune of Rs. 6,16,403/- was disallowed and equal amount of penalty was imposed. In appeal, the Com....
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....the balance-sheet are common for both the units, the credit shall not be denied. 5. Per-contra, Shri G.R. Singh, the ld. D.R. for the respondent submits that Rule 3 of the Cenvat Credit Rules entitles a manufacturer to take the cenvat credit, if the input service is received by the manufacturer. He, further submits that since the invoices were in the name of unit II and the cenvat credit was taken by the Unit I, without following the procedures prescribed in Notification No.214/86 dated 25.03.1986, the appellant shall not be eligible to take cenvat credit on service tax paid by the Service provider. To substantiate his above stand, the ld. D.R. has relied on the judgment of Honble Supreme Court in the c....
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....t can be taken by the other unit. The cenvat statute in Rule 7 has provided that the input service distributor may distribute the credit among its other manufacturing units. The restrictions contained in the said rule have no application to the facts of this case. The statute specifically provides for taking of cenvat credit upon fulfillment of the conditions that the input service has been received and utilized for the intended purpose and in absence of any specific findings that the credit has not been mis-utilized by the appellant, credit should be allowed to Unit I, even if, the input services have been provided to the Unit II. In this contest, I find support from this Tribunal's decision cited by ld. Chartered A....
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....lar dated 23-8-2007 clearly shows that there are only two restrictions regarding the distribution of the credit. The first restriction is that the credit should not exceed the amount of Service Tax paid. The second restriction is that the credit should not be attributable to services used in manufacture of exempted goods or providing of exempted services. There are no other restrictions under the rules. The restrictions sought to be applied by the Department in this case in limiting the distribution of the Service Tax credit made in respect of the Malur unit on the ground that the services were used in respect of the Cuttack Unit finds no mention in the relevant rules. As such, restricting the distribution of Service Tax c....