2017 (9) TMI 942

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....g under Chapter 24 of the Central Excise Tariff Act, 1985. The respondents had availed credit of Rs. 36,06,766/- for the period from August 2011 to December 2011 on the strength of documents issued by M/s. India Leaf Tobacco Division (ILTD), Guntur, who is not an input service distributor. Therefore, a show-cause notice dated 6.9.2012 was issued by the Additional Commissioner as to why the CENVAT credit of input service tax availed by them on the strength of documents issued by M/s. ILTD, Guntur should not be demanded interest and penalties. Vide Order-in-Original dated 29.11.2013, the Additional Commissioner of Central Excise, Bangalore has dropped the proceedings holding that the impugned services are not hit by bar as contained in Rule 7....

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..../253/2012. The learned counsel submitted that the issue involved in this appeal is no more res integra and has been covered in favour of the assessee by the Division Bench of this Tribunal cited supra wherein the Division Bench vide Final Order dated 12.7.2016 in the assessee s own case has held that assessee is entitled to CENVAT credit of service tax. He further submitted that this Tribunal mainly relied upon the judgment of the Hon'ble Karnataka High Court in the case of CCE vs. ECOF Industries Ltd.: 2011-TIOL-770-HC-KAR-ST. wherein the High Court has observed as under: "8. It is in this context, the definition of input service distributor makes it clear that a manufacturer or a producer of a final product or a provider of output s....