TaxTMI 
TaxTMI 
2024 (12) TMI 1707
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....nd without distributing the said credit under Rule 7 of the Cenvat Credit Rule. 2. The brief facts are the Appellant is manufacturing excisable goods and operating from multi-unit location having head office cum manufacturing unit in Bangalore. Different units of the appellant were receiving various common inputs and availed cenvat credit on common inputs for payment of central excise duty towards home consumption as well as to export. During audit, it is observed that the appellant had availed ineligible cenvat credit for the period from April 2009 to March 2013 and appellant reversed the cenvat credit with interest and also paid penalty for reversal of the said amount. Thereafter, show cause notice was issued and Adjudication Authority....
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....gistration, the Adjudication Authority confirmed the demand. Learned Counsel further submits that the issue is no more res integra and as per the decisions of the Tribunal in the matter of Commissioner of Central Excise Vs. Dashion Ltd., [2016 (41) S.T.R. 884 (Guj.) it is held that:- "5. Rule 7 pertains to manner of distribution of credit by input service distributor. At the relevant time, this Rule 7 permitted input service distributor to distribute Cenvat credit in respect of service tax paid on the input service to its manufacturing units or units providing output service, subject to the two conditions, viz.:- "(a) the credit distributed against a document referred to in rule 9 does not exceed the amount of service tax ....
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.... of Central Excise in terms of Rule 3 thereof. Sub-rule (2) of Rule 3 further required any provider of taxable service whose aggregate value of taxable service exceeds certain limit to make an application for registration within the time prescribed. However, there is nothing in the said Rules of 2005 or the Rules of 2004 which would automatically and without any additional reasons disentitle an input service distributor from availing Cenvat credit unless and until such registration was applied and granted. It was in this background that the Tribunal viewed the requirement as curable. Particularly when it was found that full records were maintained and the irregularity, if at all, was procedural and when it was further found that the records....
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....the Hon'ble High Court of Bombay in the matter of Commr. of C.T., PuneI, Commissionerate Vs. Oerlikon Balzers Coating India P. Ltd., [2019 (366) E.L.T. 624 (Bom.) and it is held that :- "9. From reading of the above Rules both pre and post amendment, it would be noticed that both provisions give an option to the assessee concerned whether to distribute input services tax available to it amongst its other manufacturing units which are providing output services. This is evident from the use of word "may distribute the Cenvat credit is found in Rule 7 both prior and also post 2012. Thus, from the reading of the Rules, the option was available to the assessee whether to distribute the Cenvat credit or not. In fact, our attention is inv....