2018 (8) TMI 1570

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....ave another unit at Uppal, Hyderabad manufacturing dutiable Ayurvedic goods. The services on which credit was availed was common to both these units. The Chennai Unit who is the respondent herein availed credit on the invoices addressed to them. The department was of the view that they are not eligible to avail 100% input service tax credit and that they ought to have taken ISD registration and distributed the credit proportionately to the Uppal Unit as well as the appellant unit. Show cause notice was issued raising the above allegations and for recovery of the CENVAT credit along with interest and for imposing penalties. After due process of law, the original authority confirmed the demand along with interest and imposed equal penalty. In....

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....ered under the Act and which fall within the definition of input services as appearing in Rule 2(l) of the CCR could be made eligible to an assessee by way of distribution. This position of the law is also clear from the definition of the term "input service distributor" as defined under Rule 2(m) of CCR reading "an office of the manufacturer or producer of final products or provider of output service which receives invoices issued under Rule 4A of the Service Tax Rules, towards purchases of input services and issues invoice, bill or as the case may be challan for the purpose of distributing credit of tax to such manufacturer or producer as the case may be". This rule thus enables the passing of the credit (distribution) to a manufacturer o....