TaxTMI 
TaxTMI 
2018 (2) TMI 381
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....f both the parties, we proceed to decide the appeal on merit as the issue involved in the appeal is in a narrow compass. 2. The present appeal is directed against the impugned order dated 08.11.2013 passed by the Commissioner whereby the Commissioner (Appeals) has confirmed the demand along with interest and also imposed penalty of Rs. 30,00,000/- (Rupees Thirty Lakhs only) on the appellant. Briefly the facts of the present case are that the appellants are holders of Central Excise Registration Certificate No. AAAC15950LXM006 for manufacture and clearance of Cigarettes falling under Chapter 24 of the Central Excise Tariff Act, 1985, Smoking Mixture falling under Chapter sub heading 2403 1020, Cut Tobacco falling under Chapter sub heading....
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....vices used in a unit exclusively engaged in manufacture of exempted goods or providing of exempted services shall not be distributed. The said condition is clearly applicable to M/s. ILTD since they are neither manufacturers of excisable goods nor service providers in terms of the Central Excise Act, 1944, and the Finance Act, 1994, respectively, and therefore it appeared that they are not entitled to distribute input services credit as an input service distributor. Therefore, M/s. ILTD do not qualify as an input service distributor to distribute input service credit to the assessee and the cenvat credit availed by the assessee on the strength of documents issued by M/s. ILTD in the capacity as an input service distributor appeared to be in....
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.... 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 service may have more than one unit and may be distributed in various parts of the country. It is in this background the definition of service distributor is defined as office of the manufacturer or producer of a final product or provider of output service which receives invoices issued under Rule 4A of the Service Tax Rules, 1994 towards purchases of 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. Therefore, the law....
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....re decisions in the appellant s own case on an identical issue, wherein the Commissioner (Appeals) has allowed the appeal of the assessee and the Department has filed the appeal before this Tribunal and the Tribunal has dismissed the appeals of the Department vide its Final Order Nos. 21318-21319/2016 dated 02.12.2016 and 22022/2017 dated 11.09.2017. 5. The learned AR defended the impugned order and submitted that as per the Board s Circular No. 97/8/2007-ST dated 23.08.2007, an Input Service Distributor is an office or an establishment of a manufacturer of excisable goods or provider of taxable service. He further submitted that M/s. ILTD, Guntur is an independent Division of ITC Group of Companies and is not involved in the activity of....