2016 (11) TMI 995

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.... ISD as the said services were availed in a different manufacturing unit i.e. the sister concern of the appellant. The first adjudicating authority confirmed the demand. However, the Commissioner (Appeals) remanded the case back to the Assistant Commissioner observing as under: - "While going through the details of services provided and mentioned to the above invoices, I find that most of the entries are for the activities related to Nivea group of products which are manufactured in the appellants' unit. Therefore, the CENVAT Credit cannot be disallowed. However, there are some entries mentioning Bangalore Plant, insurance policy of other units, etc which needs detailed verification. Therefore, I set aside the impugned Order-in-Original wi....

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....r quantification to the Assistant Commissioner. He argued that since the appellants have not challenged the said order, they cannot now claim credit in respect of the services availed by their sister unit at Banagalore. To support this assertion, he relied on the decision of the Tribunal in the case of B.P.R. Tex Prints Ltd.  2001 (136) ELT 935 (Tri-Del). The said decision has been upheld by the Hon'ble Supreme Court. He argued that the finding of the Commissioner (Appeals), if not challenged, become final and since the Commissioner (Appeals) had ordered reversal of credit in respect of services availed by their sister unit, it is not open to the appellant to contest the same now. 4. I have carefully considered the rival arguments....

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....he argument of learned AR does not hold much force. Hon'ble Karnataka High Court in case of ECOF (supra) has observed as under: - "4. -The assessee had availed the Service tax credit based on the invoices issued by the Chennai office indicating that the Service tax are taken by their unit at Malur. That the Service tax paid by the Chennai unit 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 distribu....