TaxTMI 
TaxTMI 
2024 (4) TMI 961
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.... distributed by the "inputs service distributor" to its own units providing taxable service or manufacturing goods. 2. The issue involved herein is whether the credit distributed by M/s. Parle Biscuit Private Ltd. i.e. 'inputs service distributor' to the appellant, a contractual manufacturer/job worker, for the period prior to 01.04.2016 is in accordance with Rule 7 of CENVAT Credit Rules, 2004 as prevailing at the relevant time? 3. The facts leading to the filing to the instant appeal are stated in brief as follows. Parle Biscuit Private Ltd. is registered as an "inputs service distributor" under the CENVAT Rules. The confectioneries were being manufactured not only in the factories of Parle Biscuit, but also in the factories of othe....
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....lf of the revenue and pursued the case records including the written submissions as well as case laws place on records by the respective sides. According to Revenue since the wordings "outsourced manufacturing unit" has been added only w.e.f 01.04.2016, therefore before the said period, no outsourced manufacturing unit like the appellant herein were permitted to utilise the Cenvat Credit distributed by input service distributor. In order to appreciate the issue involved herein, the relevant portion of Rule 7 ibid before 01.04.2016 and after 01.04.2016 are extracted as under:- Before 01.04.2016 "Rule 7. Manner of distribution of credit by input service distributor.- The input service distributor may distribute the CENVAT cr....
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....s used in any statute have to be interpreted without adding any words. The term 'its manufacturing unit' has certainly a wider term to include an outside manufacturing unit or the job worker. Another thing which supports my aforesaid view is the Registration Exemption Notification issued in the year 2001 under Rule 9(2) of Central Excise Rules, 2001 which provides for exemption from registration of the authorised person to manufacture goods on behalf of principal manufacturer. As per the agreement between appellant and Parle Biscuits, they were receiving the raw materials from them and finished goods were processed at their factory with their won labour but Trademarks of Parle Biscuits were cleared on payment of duty to the depot of Parle B....
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....to be no good reason as to why CENVAT credits should not be allowed to be distributed to a job worker in the facts and circumstances of the present case. xxx xxx xxx 41. As noticed above, CENVAT is a beneficial scheme with the stated purpose of allowing CENVAT credit of all taxes paid on inputs and services so as to avoid cascading effect of taxes and duties. 42. Thus, even in terms of the provisions of rule 2(m) and rule 7 of the CENVAT Rules, as they stood prior to 01.04.2016, the appellant could distribute CENVAT credit in respect of the service tax paid on inputs services to its manufacturing units, including a job workers. 43. Such being the position, we also find substance in the contention advanced....
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....er Bench decision. 6. Following the aforesaid decision of the Larger Bench of Tribunal some more decisions have been passed by the Coordinate Benches on the same lines. Some of those decisions are as under:- i) 2023 (5) TMI 1129- CESTAT New Delhi ̶ M/S Ajmer Food Products Pvt. Ltd. Versus Commissioner of CGST & Central Excise Jaipur ii) 2022 (10) TMI 875- CESTAT New Delhi ̶ M/s M.B. Industries Pvt. Limited, M/S Parle Biscuits Pvt. Limited, M.V. Joshi (Deceased), Mariamma Iyer, M/s M.B. Food Pvt. Limited Versus Commissioner of Central Goods And Service Tax & Central Excise Indore (M.P) iii) 2022 (10) TMI 1075 - CESTAT New Delhi ̶ M/S Shahi Food Product Versus Commissioner of CGST & Central Excise,....