2016 (11) TMI 477

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.... CENVAT Credit, amounting to Rs. 1,39,055/- during the month of September 2006, on the basis of invoices issued by their head office registered as input service distributor. Alleging that since the input services viz. security service, general insurance service, consultancy engineering services were received at their Sikkim unit, having no nexus with manufacturing at their Dadra unit, therefore, not eligible to CENVAT Credit being fall outside the scope of definition of input service prescribed at Rule 2(l) of CENVAT Credit Rules 2004, a Show Cause cum demand notice was issued to them on 08.09.2011 for recovery of credit with proposal for imposition of penalty. On adjudication, the demand was confirmed and penalty of equal amount imposed. A....

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....006 is clearly barred by limitation. 4. The learned Authorized Representative for the Revenue reiterates the findings of the learned Commissioner (Appeals). He has submitted that the credit availed on various input services requires to have nexus with the manufacture and clearance of final product from the place of removal. In the present case, these services had been availed at Sikkim unit, which had no nexus with the manufacturing activity undertaken at Dadra unit. Accordingly, CENVAT Credit cannot be held admissible to the Appellant. The learned Authorized Representative placed reliance on the Stay Order of the Tribunal in the case of M/s Hindalco Industries Vs CCE Allahabad  2013 (292) ELT 416 (Tri-Del). 5. Heard both sides and p....

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....tion of service distributor is defined as office of the manufacturer or producer of a final product or provider of output service which receives invoices issued under Rule 4A of the Service Tax Rules, 1994 towards purchases of input services and issues invoice, bill or, as the case may be, challan for the purposes of distributing the credit of service tax paid on the said services to such manufacturer or producer or provider, as the case may be. Therefore, the law mandates that the manufacturer who wants to avail the benefit of this service tax if he has more than one unit he should also get registered himself as a service provider and then, he would be able to collect all the input service tax paid in all its units and accumulate them at i....

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....goods or provider of taxable service. It receives tax paid invoices/bills of input services procured (on which Cenvat credits can be taken) and distributes such credits to its units providing taxable services or manufacturing excisable goods. The distribution of credit is subject to the conditions that - (a) the credit distributed against an eligible document shall not exceed the amount of service tax paid thereon, and (b) credit of service tax attributable to services used in a unit either exclusively manufacturing exempted goods or exclusively providing exempted services shall not be distributed. An input service distributor is required (under Section 69 of the Act, read with Notification No. 26/2005-S.T.) to take a separate registration.....