CENVAT Credit Denial Overturned: Full Credit Permitted for Pre-2016 Distribution Without Proportional Requirement.

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....Denial of CENVAT credit distributed by the Head Office (Input Service Distributor) to a unit during April to June 2012. The denial was based on the ground that the credit was not distributed proportionately among all units based on their respective turnovers, resulting in excess credit distribution to the unit. The key points are: Prior to the amendment effective from 01.04.2016, there was no compulsion on the assessee to distribute the credit proportionately or to all units. Even if the entire credit was distributed to one unit, it cannot be denied. The situation was revenue neutral as the other units paid more duty than the attributed credit. The CESTAT Ahmedabad held that 100% credit availed by the appellant was in order as per the exist.........