2016 (12) TMI 982

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.... confectionery and chocolates. The department raised the dispute that the service tax paid on advertising, event management etc. which is not related to the product namely sugar confectionery, chocolates manufactured in the appellant's factory, therefore they are not entitled for the Cenvat credit. The adjudicating authority has confirmed the demand of Cenvat credit. The Commissioner (Appeals) has upheld the original order, therefore the appellant is before me. 2. Shri Rajesh Ostwal, the Ld. Counsel for the appellant submits that the service was distributed by their Head Office which is permissible though the services are not related to the factory but it is related to the product manufactured in different factory of the same appellant....

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.... manufacture of the final product. In the present case, the input service is related to the product Nescafe and Maggie Noodles which are not manufactured in the appellants factory but in different factory situated at different location, therefore there is a clear violation of the provisions of Rule 2 (l)(ii). He further submits that as per Rule 3 of Cenvat Credit Rules, the Cenvat Credit can be availed in respect of input service used in the manufacture of final product. He placed reliance on the following judgments: (i) Nitco Limited Vs. Commissioner of C.Ex., Raigad 2014 (35) S.T.R. 475 (Bom.) (ii) Nitco Ltd. Vs. Commissioner of Central Excise, Raigad 2014 (34) S.T.R. 835 (Tri.-Mumbai) (iii) Clariant Chemcials (I) Ltd.Vs. Commissioner ....

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.... distribution of credit by input service distributor by imposing two conditions therein, which are as follows : "a. Credit distributed under the invoice of ISD does not exceed the amount of Service tax paid. b. Credit of Service exclusively used for exempted goods or exempt service is not distributed." 5. Therefore, the assessee is entitled to distribute the Cenvat credit on the input services on its manufacturing unit or other units providing the output services. The view taken in the order in appeal that the distribution of credit is for the advertisement of the product, which is not at all manufactured at Malur Unit, therefore, cannot be accepted. The finding recorded by the Appellate Authority that the assessee is entitled to take cr....