TaxTMI 
TaxTMI 
TaxTMI 
2017 (5) TMI 752
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..../- along with interest and to impose penalty. It has been alleged that the appellant had availed the input service credit on the basis of the invoice issued by their Head Office as 'Input Service Distributor'. It has further been alleged that the Head Office as ISD had distributed the service tax paid for the activities/services provided to their units other than the actual manufacturing unit of finished excisable goods. The Adjudicating Authority disallowed the service tax credit of Rs. 5,84,949/- together with interest and also imposed penalties. By the impugned order, the Commissioner (Appeals) upheld the Adjudication Order. 2. Heard both sides and perused the appeal records. 3. The ld. Counsel appearing on behalf of the appell....
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.... service distributor may distribute the Cenvat credit in respect of the service tax paid on the 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;" "14. Input Service has been defined as follows in CCR. Rule 2 (l) input service means any service,- (i) used by a provider of taxable service for providing an output service, or (ii) used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and [clearance of final products upto the place of removal,] and includes services used in relation to setting up, moderniza....
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....ious services which were distributed by their head office at Mumbai. The only dispute raised in para-2 and 6 of the show cause notice dated 24/01/2011 was that appellant has distributed cenvat credit by their head office with respect to input services received in the other five units of the appellant. It is not coming out from the show cause notice and the order passed by lower authorities as to how the documents issued by the head office of the appellant are not the proper document under cenvat credit rules when it gives all the relevant details required under the Cenvat Credit Rules. In these circumstances, para-8 of the judgment of Hon'ble Karnataka High Court in the case of ECOF Industries Pvt. Ltd. [2011(23) STR 337 (Kar.)]-(2011-TIOL-....
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....roviding output service, subject to the following conditions, namely :- (a) the credit distributed against a document referred to in rule 9 does not exceed the amount of service tax paid thereon, or (b) credit of service tax attributable to service use in a unit exclusively engaged in manufacture of exempted goods or providing of exempted services shall not be distributed." Therefore, only two limitations are put for the distribution of credit by an input service distributor. Firstly, it cannot exceed the amount of service tax paid and secondly, the credit of service tax attributable to service used shall not be distributed in a unit exclusively engaged in the manufacture of exempted goods or providing of exempted services." 6. Base....