2018 (12) TMI 1300

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....e has urged the following question of law for our consideration:- "(a) Whether in the facts and circumstances of the case and in law, the CESTAT was right in setting aside the Order-in-Original No. PUN-EXCUS-002-PR.COM-015- 15-16 dated 29.01.2016 and extending the benefit of revenue neutrality without giving any findings on the aspect of the settled law that "where the demand is confirmed on account of fraud or collusion or willful mis-statement or suppression of facts or contravention of any of the provisions of the Finance Act or the rules made thereunder with the intent to evade payment of service tax in that case the benefit of revenue neutrality cannot be given?" 3. The respondent - assessee has unit at Pune and also at various other....

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....untry in terms of Rule 7 of CENVAT Credit Rules, 2004. It was on the aforesaid basis that the duty demand was made upon the Pune unit by holding that availment of the CENVAT credit at Pune in respect of the IT services was not justified. This view of the Revenue was upheld by the Commissioner of Service Tax by his order dated 29.1.2016. 6. On appeal, the impugned order dated 29.3.2017 of the Tribunal held that even if the respondent assessee Pune unit had distributed the credit and not utilized it in Pune, the entire exercise would have been revenue neutral. This if it had distributed the credit which being demanded by the Revenue to its other units, the credit would have been utilized by other units as all of them are paying service tax o....

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....The credit distributed against a document referred to in rule 9 does not exceed the amount of service tax paid thereon; or (b) credit of service tax attributable to service use in a unit exclusively engaged in manufacture of exempted goods or providing of exempted services shall not be distributed. Rule 7 Post 2012- amendment RULE 7. Manner of distribution of credit by input service distributor - The input service distributor may distribute the CENVAT credit in respect of the service tax paid on the input service to its manufacturing units or units providing output service, subject to the following condition, namely :- (a) The credit distributed against a document referred to in rule 9 does not exceed the amount of service tax paid th....