2022 (5) TMI 75

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....TI Pune, Zonal Unit, it was noticed by the Department that M/s. PBPL is registered as input service distributor (ISD hereinafter) who distributed input service credit to their outsourced manufacturing units by way of issuing ISD invoices. It was observed that the appellant being such outsourced manufacturer has availed the CENVAT Credit and utilised the same for payment of duty on finished goods based upon the ISD invoices issued by M/s. PBPL. Department formed an opinion that appellant has wrongly availed the CENVAT Credit in violation of Rule 7 of CENVAT Credit Rules 2004. Accordingly, vide show cause notice no. 1233 dated 14.5.2018, that the credit of Rs.3,04,580/- was proposed to be recovered from the appellant along with interest and p....

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....stributor may distribute the CENVAT credit in respect of service tax paid on the input services only to its manufacturing units. For the said reason, the order under challenge is prayed to be set aside. The decision in the case of Sunbell Alloys Company of India Ltd. vs. CCE reported as 2014 (34) STR 597, as has been relied upon by Commissioner (A) is mentioned to be not applicable to the facts of the present case. Order is prayed to be set aside and appeal is prayed to be allowed. The learned Counsel for the appellant has relied upon the decision of the Tribunal in the case of M/s. Krishna Food Products and Ors. Vs. Additional Commissioner of CGST & C.Ex vide Final order no. 51638-51640/2021 dated 7.7.2021 and in the case of Ajmer Food Pro....

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....ts used for manufacturing of the biscuits are supplied by M/s. PBPL itself and it is for these inputs that the appellant have taken the credit and utilised the said credit for payment of duty on the biscuits cleared on account of Parle biscuits. The final product is cleared on payment of excise duty by the appellant on the maximum retail price declared by M/s. PBPL which is printed on the packages of the biscuits as is provided under rule 10 A of Central Excise (Valuation Rules) 2000. 6. In the given circumstances the moot question appears to be adjudicated is: Whether M/s. PBPL was justified in distributing credits on input services attributable to the final product on pro rata basis proportionate to the turnover of each unit between....