TaxTMI 
TaxTMI 
2024 (8) TMI 150
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....ly and fan motors falling under Chapter Heading 85 of CETA, 1985. They were availing CENVAT credit on duty paid on inputs, capital goods and are also availing CENVAT credit of service tax paid on input services. The appellant is having two more factories, Unit - II located at Bilaspur Road, Village Pathredi, Gurgaon, Haryana and Unit - III located at MOI Road, Murhe Wasti, Kurelli Village, Pune. The appellant had availed credit of service tax paid on royalty, technical know-how charges and consulting engineering fees paid to their holding company namely M/s. Mitsuba Corporation, Japan. The appellant had taken entire service tax credit paid on import of services for their unit at Gummidipoondi only and did not distribute the credit of servic....
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....2012 and post amendment give an option to the assessee concerned whether or not to distribute input services tax available to it amongst its other manufacturing units which are providing output services, as the phrase "may distribute the Cenvat credit" is found in Rule 7 both prior and also post 2012. It was further clarified that only from 01.04.2016 when the phrase was substituted by "shall distribute the Cenvat credit" that such distribution under Rule 7 of the Cenvat Credit Rules, 2004 became mandatory. Reliance was also placed on the decision of the Hon'ble High Court of Gujarat in Commissioner of Central Excise Vs. Dashion Ltd. [2016 (41) STR 884(Guj)]. 3.2 The learned Authorized Representative for the respondent reiterated the f....
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....g of exempted services shall not be distributed. Rule 7 Post 2012 - amendment 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 condition, namely :- (a) The credit distributed against a document referred to in Rule 9 does not exceed the amount of service tax paid thereon; or (b) credit of service tax attributable to service used in a unit exclusively engaged in manufacture of exempted goods or providing of exempted services shall not be distributed; (c) credit of service tax attributable to service used who....