2022 (12) TMI 970

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....cated in Vadodara along at the same place with one of the appellant unit. The head quarter availed Cenvat Credit in respect of input services availed at corporate level and the entire Cenvat Credit was availed in the appellant's unit located in Vadodara which is at the same place as the Head Office. The invoices of such services were received in the name of the Head Office. He pointed out that they had not taken the ISD registration at the material time though they have taken it on a later date. He argued that failure to register as ISD should not disentitled them for the Cenvat Credit rightly available to them. He relied on the decision of Tribunal in the case of PIRAMAL GLASS PVT. LTD.-2021 (55) G.S.T.L. 22 (Tri.-Ahmd), where in the simil....

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....04. In this regard, I have gone through the judgments cited by the appellant. The judgments and its relevant orders are reproduced below. In the case of Oerlikon Balzers Coating India Pvt. Ltd. (supra) The Hon'ble Bombay High Court interpreting Rule 7(d) passed the following order :- "8. It would be appropriate that we reproduce "8. Rule 7 as existing prior to 2012 and post 2012 which is as under :- Rule 7 as Existing Prior to 2012 :- RULE 7. Manner of distribution of credit by input service distributor. - The input service distributor may distribute the Cenvat credit in respect of the service tax paid on the input service to its manufacturing units or units providing output service, subject to the follow....

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....ment, 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 to distribute the Cenvat credit or not. In fact, our attention is invited to Rule 7 of the Cenvat Credit Rules, 2004 as substituted w.e.f. 1-4-2016 which has made it mandatory for distribution of input services to the various units providing output services. This is evidence by the use of words "shall distribute the Cenv....

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....ntial benefit, in accordance with law." 7. In view of the aforesaid orders, the impugned order dated 1-11-2017 is not sustainable". In the case of Gloster Cables Ltd. - 2018 (363) E.L.T. 1197 (Tri. - Hyd.). Considering the same issue Tribunal passed the following order :- "6.I find that Rule 7 of CENVAT Credit Rules as it existed during the relevant period reads as follows : "Rule 7. Manner of distribution of credit by input service distributor. - The input service distributor may distribute the CENVAT credit in respect of the service tax paid on the input service to its manufacturing units or units providing output service, subject to the following conditions, namely :- (a) the credit distribute....