2020 (1) TMI 369

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....ving their head office at Gurgaon and the manufacturing units are located in Gurgaon, Parwanoo and Chennai. The head office is distributing the Cenvat credit of service tax to the appellant as well as their other units. The head office availed service tax on warehousing service and mainly for the appellant. The said warehouses have been used by Chennai as well as Parwanoo unit also but whole of the Cenvat credit was distributed to the appellant. The Revenue is of the view that as whole of the service has not been used by the appellant, therefore, in terms of Rule 7 of the Cenvat Credit Rules, 2004, the appellant is entitled to avail Cenvat credit on proportionate basis. In these circumstances, Cenvat credit is not available to the appellant....

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....ion of the submissions made by both the sides, I find that in this case, the first issue is that whether any notice has been issued to the ISD or not? The answer came that no notice has been issued to the ISD. 7. In terms of Rule 3 of the Cenvat Credit Rules, 2004, whatever service tax has been paid by the appellant, the appellant is entitled to avail Cenvat credit on that. Admittedly, the distribution of the Cenvat credit has not been disputed, therefore, the appellant is entitled to avail Cenvat credit on this ground only. Further, I gone through the decision of Hon'ble High Court of Bombay in the case of M/s Oerlikon Balzers Coating India Pvt Ltd (supra), wherein the Hon'ble High Court has held as under: "8. It would be appro....

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.... wholly in a unit shall be distributed to the unit; and (d) credit of service tax attributable to service used in more than one unit shall be distributed pro rate 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. 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....