2018 (10) TMI 1543

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....ted by Ms. A.S. Parab, Assistant Commissioner (AR) for the Revenue and Ms. Manasi Patil, Advocate, for the respondents, we find that the respondents are engaged in the manufacture of D.G. sets and D.G. engines falling under Chapter 84 and 85 of the Central Excise Tariff Act. They availed the cenvat credit of service tax paid on various input services availed by their head office located at Kandivali, Mumbai, which was registered as ISD under Rule 4(A) of the Service Tax Rules. 3. Revenue by entertaining the view that such services were availed at the assessee's head office and were pertaining to the erection, installation, commissioning services, which were not having any connection with the assessee's manufacturing activities, proceedings....

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....nother prohibition is that the input service credit should not exceed the credit availed by the ISD under invoice. The above view has been fully supported by the decision of Hon'ble Tribunal Bangalore in the case of M/s. ECOF Industries Pvt. Ltd. Vs. CCE, Bangalore, 2010 (17) STR 515 (Tri-Bang). In the above decision the issue involved was that the department objected the distribution of service tax credit earned in one of the unit to the other unit of the same group. By analyzing the provisions contained in Rule 7 and the para 2.3 of the master circular dated 23.8.2007, the Hon'ble Tribunal held that subject to conditions mentioned in the above Rule there is no restriction for ISD to distribute input service credit to its any of the manufa....