TaxTMI 
TaxTMI 
2022 (10) TMI 1075
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....own manufacturing unit under rule 7 of the CENVAT Credit Rules, 2004 [the CENVAT Rules] and not to the appellant which is not a manufacturing unit of Parle. 2. The Commissioner (Appeals), by order dated 25.03.2019, held that the appellant would be eligible for taking CENVAT credit w.e.f. 01.04.2016 in view of the amendment made in rule 7 on 01.04.2016 but has denied CENVAT credit to the appellant for the period prior to 01.04.2016 from April 2013 to 31.03.2016. The said order passed by the Commissioner (Appeals), to the extent that it is denied CENVAT credit for the period prior to 01.04.2016, has been assailed in this appeal. 3. The appellant is engaged in the manufacture of Poppins and Kismi Toffee [the products] exclusively for Par....
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....tioned manufacturer. For SHAHI FOOD PRODCU. (Authorised Signatory) Place: Nathdwara Date: 3/12/2010 (Actual manufacturer or his authorized signatory) Cont...2/-" 4. It has been stated that the inputs required for manufacture of the products were procured by Parle and supplied directly to the factory of the appellant on payment of excise duty. Parle pays for the inputs but the appellant takes credit of the same and utilizes the credit for payment of duty on the products cleared on account of Parle. The appellant also claims that it availed and utilized input services used in relation to the manufacture of products for Parle in accordance with the provision of the CENVAT Rules. 5. As the said product was ma....
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....t relating to service tax paid on Goods and Transport Agency service on outward transportation of the final product. It is this order of the Commissioner (Appeal) that has been assailed in the present appeal. 9. Shri J.M. Sharma, learned consultant for the appellant submitted that Parle was justified in distributing credits on input services attributable to the final product on a pro rata basis proportionate to the turnover between the manufacturing plants of Parle and its contract manufacturing units under rule 7(d) of the CENVAT Rules in view of the decision of the Larger Bench of the Tribunal in M/s. Krishna Food Products vs. the Additional Commissioner of CGST and Central Excise, Indore Commissionerate [Excise Appeal No. 52692 of 201....
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.... (c) ****** (d) credit of service tax attributable to service used by more than one unit shall be distributed pro rata on the basis of the turnover of such units during the relevant period to the total turnover of all its units, which are operational in the current year, during the said relevant period;" Explanation 1.- For the purposes of this rule, "unit" includes the premises of a provider of output service and the premises of a manufacturer including the factory, whether registered or otherwise." AFTER 1.04.2016 Rule 2(m) "input service distributor" means an office of the manufacturer or producer of final products or provider of output service, which receives invoices issued under rule 4A of th....
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....6, shall not be transferred to any outsourced manufacturing unit and such credit shall be distributed amongst the units excluding the outsourced manufacturing units. Explanation 1.- For the purposes for this rule, "unit" includes the premises of a provider of output service or the premises of a manufacturer including the factory, whether registered or otherwise or the premises of an outsourced manufacturing unit. Explanation 2. ***** Explanation 3. ***** Explanation 4. For the purposes of this rule, "outsourced manufacturing unit" means a job-worker who is liable to pay duty on the value determined under rule 10A of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 on the goods m....
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....nt is also accounted for in the balance sheet of Parle as duties paid by them. It has also been stated that as a business strategy advertisement, market research, sales promotion and marketing was centralised and handled by the office of Parle at Bahadurgarh. Such Credit availed on input services attributable to the final product was distributed by Parle on a pro-rata basis proportionate to the turnover of each unit between its own manufacturing plants and its contract manufacturing units, including the appellant, under rule 7 (d) of the CENVAT Rules. 26. What is also important to notice is that rule 7 of the CENVAT Rules allows distribution of credit to its manufacturing units. It does not use the words its own manufactures units.....