TaxTMI 
TaxTMI 
2017 (5) TMI 599
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....ner/GZB/2012-13 dated 28/03/2013 & Appeal No. E/58868/2013 is filed by appellants, M/s Dabur India Limited against Order-in-Original No.15/Commissioner/GZB/2012-13 dated 28/03/2013. The issue in both these appeals is common. Therefore, they are taken together for decision. E/58867/2013 2. The brief facts of the case are that the appellants - M/s Dabur India Limited, Corporate Office, Kaushambi, Ghaziabad were registered with the Central Excise & Service Tax department as Input Service Distributors (ISD in short) M/s Dabur India Limited were availing the facility of Cenvat Credit of Service Tax paid on various Input Services including Advertisement Service & Sales Promotion Service. As Input Service distributors they used to distribute....
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....value of each unit whether paying duty or availing area based exemption under Notification No.50/2003-CE dated 10/06/2003 or any other exemption and value of the traded goods. M/s Dabur India Limited (ISD), vide letter dated 10/10/2011 [RUD 9] and letter dated 13/10/2011 [RUD - 10] have provided the items wise & unit wise production value of both dutiable as well as exempted goods and value of traded goods respectively. On the basis of said details, the item wise & year wise percentage of Cenvat Credit attributable to dutiable goods, exempted goods and trades goods have been worked out in a chart enclosed as Annexure-C for the last five year from April, 2006 to March, 2011. On the basis of the percentage worked out in the said Annexur....
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....ndia Ltd. (Chyawanprash unit). HPSIDC Industrial Area Baddi, District Solan (H.P.) (Ann-6) 29211686 587511 279680 30078877 20835681 419056 199647 21454385 7 Dabur India Ltd. (Haz), 109 HPSIDC Industrial Area Baddi District Solan (H. P.) [Hazmola unit] (Ann-C-7) 11629986 232423 90051 119524600 0 0 0 0 8 Dabur India Ltd. (Haz), 109 HPSIDC Industrial Area Baddi District Solan (H. P.) [Tooth powder unit] (Ann-C-8) 105051 2102 1051 108204 0 0 0 0 9 Dabur India Ltd. Narendrapur (Ann-C-9) 379955 7599 3799 0 0 0 0 0 TOTAL 390962154 7819268 3075287 401465356 277114000 5543042 2230935 284922977 ....
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....main contention was that under Clause (b) of Rule 7 of the Cenvat Credit Rules, 2004, only such credit which is attributable to service used in a unit exclusively engaged in manufacture of exempted goods cannot be distributed. The said Show Cause Notice was adjudicated through impugned Order-in-Original No.14/Commissioner/GZB/2012-13 dated 28/03/2013. The Original Authority did not appreciate the contentions of the appellant and relied on provisions of Clause (d) of Rule 7 of the Cenvat Credit Rules, 2004 which was provided with effect from 01/07/2012 and confirmed the demand. Aggrieved by the said Order-in-Original the appellant is before this Tribunal. E/58868/2013 M/s Dabur India Limited 3. In para 14 of the said Show Cause Notice ....
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.... distributed. He further contended that the Show Cause Notice has nowhere established that the Service Tax which was proposed to be recovered was attributable to services exclusively used in those Units which were exclusively engaged in the manufacture of exempted goods. He has further contended that it is admitted fact that the services were commonly used for entire group of manufacturing organization and that the apportionment of admissible Cenvat credit and inadmissible credit for issue of Show Cause Notice was by Revenue on the basis of turnover of Units which were manufacturing exempted goods and turnover of the Units which were manufacturing taxable goods. He further contended that in the entire Show Cause Notice therein no allegation....
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....se of Indian Oil Corporation Lted. Versus Commissioner of Central Excise, Delhi-II reported at 2014 (35) S.T.R. 411 (Tri. Delhi) wherein it was held that demand for recovery cannot be raised against input service distributor under Rule 14 of the Cenvat Credit Rules, 2004. 5. Heard the ld. D. R. who has relied on the impugned Order-in-Original. The ld. D. R. has contended that provisions of Clause (d) of Rule 7 of the Cenvat Credit Rules, 2004 were clarificatory in nature and they were applicable to the period even before 01/07/2012. 6. Having considered the rival contentions and on perusal of the records, we find that the Original Authority has specifically relied on provisions of Clause (d) of Rule 7 of the Cenvat Credit Rules, 2004 ....