2019 (4) TMI 475

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....lant unit located at Debari based zinc smelter. The Head Office distributed the cenvat credit for the month of April, 2012. It appeared to Revenue that in view of the amended Rule 7 w.e.f. 01.04.2012, it was reintroduced in the following manner:- "(d) credit of service tax attributable to service used in more than one unit shall be distributed pro rata on the basis of the turnover during the relevant period of the concerned unit to the sum total of the turnover of all the units to which the service relates during the same period". 2. The objection of Revenue is that as compared to other manufacturing units of HZL the proportionate turnover of the appellant for the relevant period is 48.58% and accordingly the excess credit distributed is ....

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....I Commissionerate vs. M/s Oerlikon Blazers Coating India P. Ltd. reported in 2018-TIOL-2688-HC-MUM-CX. Under the facts and circumstances of the case and taking notice of the provisions of Rule 7 both prior to 1.4.2012 and after 1.4.2012 have observed as follows: "9. From reading of the above Rules both pre and post amendment, it would be noticed that both provisions give an option to the assessee concerned whether to distribute input services tax available to it amongst its other manufacturing units which are providing output services. This is evident from the use of word "may distribute the CENVAT credit" is found in Rule 7 both prior and also post 2012. Thus, from the reading of the Rules, the option was available to the assessee whether....