2019 (6) TMI 961

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....ibuter (ISD). 2. Facts of the case, in a nutshell, is that Appellant is a manufacturer and service provider having units at different locations including factory at Baddi where area based exemption on manufacturing was applicable during the relevant period 2009-10 and 2010-11. CERA Audit Reported that Rule 6(3) of the Cenvat Credit Rules 2004 was not followed as exempted goods were manufactured in Baddi factory. It also found that Appellant as Input Service Distributor (ISD) had availed and Distributed Service Tax of Rs. 108.24 lacs in 2009 and basing on its calculation for 2010-11, CERA Auditor had observed that cenvat credit of Rs. 11.69 lacs calculated on pro-rata basis was recoverable from the Appellant for non-maintenance of separat....

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....sideration by the lower authorities while confirming the duty demand etc. for which he pray to set aside the order passed by the Commissioner (Appeals). He placed his reliance on the case laws of the Commissioner of Central Excise, Belapur (Appeal Nos. e/86863 and 88794/13) v. Elder Pharmaceuticals Ltd., Dabur India Ltd. = 2017-TIOL-3082-CESTAT-DEL, ITC LTD = 2018-TIOL-2218-CESTAT-MAD. to substantiate his stand. 4. In response to such submissions, Learned Authorised Representative for Respondent department Shri Anil Choudhary, Dy. Commissioner argued with reference to the reasoning and rationality found in the order of the Commissioner (Appeals) and submitted that after duty calculation made in tabular form in Order-In-Appeal itself, the....

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....was meant formanufacturer or provider of output service and not for an ISD, on the ground that ISD is covered by Rule-7 of CCR 2004 for which Rule 6(5) is not applicable to it. But a cursory reading of Rule 6 would reveal that it deals with admissibility and non-admissibility of cenvat credit on input used in or in relation to the manufacture of exempted goods or for provision of exempted service or input service and it does not deal with manufacturer or service provider. As has been interpreted in several decisions "in or in relation to" is a broader concept which encompasses the entire manufacturing process or provision of services and it has not excluded input service provider (ISD) from its purview since Rule 7 also states that ISD woul....