2018 (1) TMI 1010

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....ty of CENVAT credit on inputs, capital goods and input services. The department issued show cause notice proposing to deny CENVAT credit on certain input services which after adjudication culminated in passing of the impugned order wherein the Commissioner has allowed the credit. Aggrieved, the department is now before the Tribunal. 3. The ld. AR Shri K.P. Muralidharan reiterated the grounds of appeal. He submitted that the respondents availed CENVAT credit of service tax amounting to Rs. 10,84,886.93 based on the Input Service Distributor (ISD) invoice dated 17.7.2008 for services like housekeeping, guesthouse, copy charges, cleaning charges, conference and that these services do not fall within the definition of input services. That an a....

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....input as services were availed by other units of the respondent. When the respondent has taken ISD registration, we find no reason to deny the credit availed on such ISD invoices, though the services have been consumed in other unit of the respondent. The decision relied by the respondent in the case of Commissioner of Central Excise Vs. ECOF Industries Pvt. Ltd.   2011 (271) ELT 58 (Kar.) settles this issue. The relevant portion of the judgment is as follows:- "9. In fact, the Board has issued a circular clarifying in this regard, which is extracted by the tribunal at para 7 which reads as under :- "Para 7. Para 2.3 of the Master Circular referred to by the ld. Advocate reads as under :- "2.3 An  Input service distribu....

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....not call for any interference and therefore it is dismissed." 7. In the case of Commissioner of Central Excise Vs. Godfrey Philips India Ld.   2009 (14) STR 375, the Tribunal has held as follows:- "4.2 The definition of the input service distributor clearly says that he is not merely a dealer. The input service distributor has to be a office of the manufacturer or producer of final products or provider of output service who will distribute the credit to his manufacturing units or service providing units as the case may be. The dealer buys the manufactured goods on which duties have been paid and passes on the actual duty paid by issue of an invoice. He does not take any responsibility as regards eligibility of Cenvat credit by ....

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....llows:- "6. In our considered view, the head office of the appellant, being a registered ISD is eligible to distribute service tax credit to any of their units/factory. On a specific query from the Bench, learned departmental representative informed that there was no proposal or proposition to issue show-cause notice to the input service distributor for wrong availment of Cenvat credit. 7. We find that the view or conclusion arrived at by the lower authority in denying the Cenvat credit is incorrect as there is no dispute of receipt of services. Our views also fortified by the decision of this Bench (supra) [2009 (239) E.L.T. 323 (Tri.-Ahmd.)] wherein this Bench had recorded the following findings:- "When we look at the functions of t....