TaxTMI 
TaxTMI 
2025 (3) TMI 428
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.... of service tax on various services. 2.2 Apart from the various steel plants and captive mines, the company has extensive marketing network known as Central Marketing Organisation (CMO), spread across the length and breadth of the country. CMO through its Branch Sales Offices and stockyards sells the iron and steel products manufactured from steel plants. 2.3 The company is having its Transport & Shipping Offices (T&S) under CMO. T&S Offices are engaged in the assignment of export of iron and steel products and import of goods like coal and other plants and machineries. 2.4 The company has individual centers handling Research & Development, Engineering & Technology, Environment Management, Coal Supply, Management etc. as well as different Offices situated across the country. 2.5 All these offices are rendering services, which are related to manufacture, sale and distribution of iron &steel products. For example - (i) CMO is doing the marketing of Iron & steel products for all the steel plants (ii) Transport & Shipping is importing coal for all the steel plants (iii) Environment Division is looking after the pollution control norms for all the ....
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....2,951 4,46,476 4,59,86,979 35/Commr/Bol/1 0 dated 27.07.2010 July 2009 to May, 2010 6,57,22,909 17,31,940 2,44,705 6,76,99,554 34/Commr/Bol/1 1 dated 04.05.2011 June 2010 to March, 2011 4,21,02,440 8,35,520 4,17,291 4,33,55,251 11/Commr/Bol/1 2 dated 07.03.2012 April 2011 to December, 2011 3,78,18,942 7,54,874 3,77,437 3,89,51,253 69/Commr/ST/Bo l/12 dated 06.01.2013 January 2012 to August, 2012 corrected by Corrigendum to SCN 1,80,41,203 3,60,523 1,80,142 1,85,81,868 Total 28,71,36,649 62,12,930 19,78,330 29,53,27,909 2.8 It was alleged in all the SCNs that SAIL - DSP had contravened the provisions of Rules 2, 3, 4, 7, 9 of the Cenvat Credit Rules and Rule 4A of the Service Tax Rules during the specified periods from April 2004 to December 2015 by irregularly availing cenvat credit,amounting to a total of Rs. 94,69,90,458/-, of the service tax paid on various services like Telephone Service, GTA service, Port service, repair and Maintenance service, service provided by Air Travel Agent, Security service, insurance Service, Consulting Service, Cargo handling, Technical testing and analys....
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....spondent, which has been disputed at the end of ISD, where the cenvat credit is available to the respondent or not ? 7. The identical issue has been dealt with by this Tribunal in the case of Tata Steel Limited (supra), wherein this Tribunal has observed as under : "8. We find that the short issue involved in the matter is whether the CENVAT Credit availed by the appellant on intellectual property service can be denied, when the Input Service Distributor (ISD) i.e., TSL, Kolkata has availed CENVAT Credit and distributed the credit to the appellant as an ISD and the availment of CENVAT Credit at the end of TSL, Kolkata has not been disputed by the Revenue, or not. 9. We find that the said issue was dealt with by this Tribunal in the case of M/s. Nalco Water India Ltd. (supra) wherein this Tribunal has held as under: - "10. Further, we find that all the services in question, on which the Head Office has availed cenvat credit and distributed to the appellants in proportionate in terms of Rule 7 of the Cenvat Credit Rules, 2004, the cenvat credit cannot be denied to the appellant as held by this Tribunal in the case of Balkrishna Industries Limited (supra)....
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.... is reproduced hereunder : 5. After hearing both sides, we find that the Rule 3 merely says that a manufacturer or producer of final products or a provider of taxable service shall be allowed to take credit of any input services received by the manufacturer of such final product or provider of output services. The availability of credit therefore is related to the manufacturer of goods or provider of output services as a whole and not restricted to any particular unit of the manufacturer/service provider. 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 to be applied by the Department in this case in limiting the distribution of the Service Tax credit made in respect of the Malur Unit on the ground that the services were used....
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....d goods or providing of exempted services shall not be distributed." Therefore, only two limitations are put for the distribution of credit by an input service distributor. Firstly, it cannot exceed the amount of service tax paid and secondly, the credit of service tax attributable to service used shall not be distributed in a unit exclusively engaged in the manufacture of exempted goods or providing of exempted services." 7. As the services has been availed at the head office and same is a part of the appellant itself as a manufacturer. Therefore, I hold that appellant has availed the input service credit correctly. Consequently, the impugned order is set aside. Appeal is allowed with consequential relief, if any." 11. Further, in the case of Nestle India Limited (supra), this Tribunal again has examined the issue and has observed as under : "4. I have carefully considered the submissions made by both the sides, I find that the fact is not under dispute that though input service on which the credit was disputed was not used in the factory of the appellant but it is related to the product Nescafe and Maggie Noodles which are manufactured in the a....