TaxTMI 
TaxTMI 
2023 (6) TMI 690
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....4 for the period from April 2006 to August 2008 and from September 2008 to March 2009 in order order-in-original no. 26/09 dated 16th December 2009 of Commissioner of Central Excise, Bangalore-II, is, in the main, cavil about effecting such recovery from the appellant whose availment is claimed to be entirely in accord with provisions, and intent, of CENVAT Credit Rules, 2004. The company, a manufacturer of 'patent and proprietary medicaments' with production facilities at Peenya Industrial Area and at Pithampur, Madhya Pradesh, also carries on trading, an exempted activity, and the credit of tax on services procured by the head office was assigned to the factory at Peenya in its entirety. According to central excise authorities, having jur....
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....n of the Hon'ble High Court of Karnataka in Commissioner of Central Excise, Bangalore - IV vs. ITC Ltd [2021 (50) GSTL 339 (Kar)] holding that non-contest of eligibility, as decided in appeal, precluded raising the issue once again in another proceedings. That 'trading' was specifically deemed to be 'exempted activity' only with effect of notification no. 13/2011-CE dated 31.03.2011 and, therefore, with no retrospectivity for denial of eligibility to credit, as decided by the Tribunal in Commissioner of Central Excise, Bhopal vs. My Car (Bhopal) Pvt Ltd [2019 (22) GSTL 273 (Tri-Del)] and in Commissioner of Central Excise, Ghaziabad vs. Avon International Pvt Ltd [2017 (5) GSTL 376 (Tri-All)], also applied to the period of dispute in t....
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.... in the manner presumed by the adjudicating authority in the impugned order. 5. As the entirety of the dispute pertains to credit availed between April 2006 and March 2009 which predates the deeming of 'trading' as an exempted activity by notification no. 13/2011-CE dated 31.03.2011 and it is claimed by the appellant that denial of credit on this score has been held to be inappropriate in a catena of decisions of the Tribunal, we may, in the first instance ascertain if the decision in Roca Bathroom Products Pvt Ltd, relied upon by Learned Authorised Representative, serves to discard the claim. It is seen that the primary issue agitated before the Tribunal in that dispute was the jurisdictional competence of central excise authorities hav....
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....2005-S.T.) to take a separate registration." 10. Therefore, these are the only two limitations, which are imposed in Rule 7 preventing the manufacturer from utilizing the CENVAT credit, otherwise, he is entitled to the said credit. Merely because the input service tax is paid at a particular unit and the benefit is sought to be availed at another unit, the same is not prohibited under law. It is in this context, the manufacturer is expected to register himself as a input service distributor and thereafter, he is entitled to distribution of credit of such input in the manner prescribed under law. Therefore, the order passed by the tribunal is legal and valid and does not suffer from any legal infirmity and does not call for any inte....
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....y manufacturing exempted goods or exclusively providing exempted services shall not be distributed. An input service distributor is required (under Section 69 of the Act, read with Notification No. 26/2005-S.T.) to take a separate registration." 8. The combined reading of the Rule 7 and the clarificatory Circular dated 23-8-2007 clearly shows that there are only two restrictions regarding the distribution of the credit. The first restriction is that the credit should not exceed the amount of Service Tax paid. The second restriction is that the credit should not be attributable to services used in manufacture of exempted goods or providing of exempted services. There are no other restrictions under the rules. The restrictions sought....
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....es and perused record. The respondent has carried out, during the disputed period, the taxable service of authorized service station. They also carried out, from the same premises, the activity of trading of four wheelers. They have availed Cenvat credit of various input services which the Department has claimed has been utilized both for the taxable service as well as trading. The stand taken by the Department is that the activity of trading is to be considered as exempted service even though such activity has been specifically inserted as an exempted service only w.e.f. 1- 4-2011 vide Notification No. 13/2011-C.E. (N.T.). 6. Both the authorities below have taken the clear stand that the activity of trading has come under the cate....