TaxTMI 
TaxTMI 
2026 (3) TMI 743
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....edit do not qualify as input services as per the definition of Rule 2(1) of the CENVAT Credit Rules, 2004, proceedings were initiated and show cause notice dated 07.05.2013 was issued for the period from 2008-09 to 2012-13 up to December and a second show cause notice was issued on 04.02.2014 for the period from January 2013 to December 2013. Thereafter Adjudication Authority as per the impugned order dated 30.09.2014 disallowed the credit and confirmed the duty. Against first Show Cause Notice, Adjudication Authority imposed penalty also. Aggrieved by said order, present appeal is filed. 3. When the appeal came up for hearing, the Learned Sr. Counsel for the Appellant draw our attention to Rule 5 of the CENVAT Credit Rules and Rule 6 of the CENVAT Credit Rules, 2004. As regarding central tax registration, the Learned Sr. Counsel draw our attention to the communication made by them on 08.06.2011 regarding surrender of the service tax registration being used for 100% EOU on the ground that they have received central service tax registration from the Department for the registration and submitted that the CENVAT credit balance in this registration will be clubbed with centralized r....
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.... 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. 6. The rule 7 referred to by the id. Advocate reads as follows:- "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 distribution 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 use in a unit exclusively engaged in manufacture of exempted goods or providing of exempted services shall not be distributed". 7. Para 2.3 of the Master Circular referred to by the Id. Advocate....
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....ssessee had availed the service tax credit based on the invoices issued by the Chennai office indicating that the service tax are taken by their unit at Malur. That the service tax paid by the Chennai unit pertains to advertisement of their product 'Sabena Dish Wash Bar' which was manufactured by their Cuttack Unit and not by the unit at Malur. Therefore, the assessee was dealing with the very same product. Rule 7 of the Cenvat Credit Rules governs procedure/manner of distribution of credit by input service distributor by imposing two conditions therein, which are as follows: "a. Credit distributed under the invoice of ISD does not exceed the amount of Service Tax paid, b. Credit of Service exclusively used for exempted goods or exempt service is not distributed". 5. Therefore, the assessee is entitled to distribute the cenvat credit on the input services on its manufacturing unit or other units providing the output services. The view taken in the order in appeal that the distribution of credit is for the advertisement of the product, which is not at all manufactured at Malur unit, therefore, cannot be accepted The finding recorded by the Appellat....
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....main or inclusive part of definition of input service in Rule 2(l) of Cenvat Credit Rules, 2004 It was not used directly or indirectly in or in relation to manufacture of final products or clearance of final products from place of removal. Learned Sr. Counsel submits that said judgment is reversed by Hon'ble Supreme Court in the matter of M/s. Zydus Lifesciences Ltd. Vs. Commissioner of Central Excise, Ahmedabad 2023 (13) Centax 93 (SCH-Supreme Court ISC has reversed the judgment of Gujarat HC in Cadila Health and remanded the matter for fresh consideration) and also relied on the CBEC Circular vide F. No. 96/85/2015-CX1, dated 7-12-2015 and following case laws:- (i) Pr. Commr. Of C. Ex., Kolkata-IV v. Himadri Speciality Chemical Ltd. 2022 (66) G.S.T.L. 264 (Cal) (ii) Liebherr Machine Tools india (P) Ltd. v. C.C.E., Cus. & S.T, Bangalore-il 2016 (44) ST.R. 633 (Tri-Bang). 9. As regards Commercial or Industrial construction, the Cenvat credit denied, Learned Sr. Counsel submits that they have availed service towards installation of steel panel in dye wash room which is part of machinery and charges are paid to M/s. AMBIENT CONTROLS PVT. LTD. Adjudication Authori....
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.... (Kar). 12. As regarding Club or Association the Cenvat credit denied for the period from 01.04.2008 to 31.12.2012 is Rs. 63,771/- and from 01.01.2013 to 31.12.2013 is Rs. 25,970/- (i.e., Total Rs. 89,741/-) Learned Sr. Counsel submits that they have availed service towards Membership fee paid to Trade and Industrial Associations like Textile Machinery Manufactures Association (India) and others, which are essential to keep updated about the latest trends and technologies in manufacturing and business activities and also for promoting the products. Adjudication Authority denied the Cenvat credit on the ground that ineligible input services as per exclusion clause of Rule 2(l)(ii) of CCR, 2004. Learned Sr. Counsel relied on the following case laws; i. Hinduja Foundries Ltd. v. CCE 2016 (42) STR. 494 (Tri-Chennai) ii. Sony Pictures Networks India Pvt. Ltd. v. Commissioner of Service Таx, Mumbai-VI (2024) 20 Centax 472 (Tri-Bom) (Para 12) which is affirmed by Bombay HC 13. As regards Convention Services the Cenvat credit denied for the period from 01.04.2008 to 31.12.2012 of Rs. 9,912. Learned Sr. Counsel submits that they have availed service on de....
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....e are more than one premises of the same assessees but billing and accounting is centralized. Therefore, this facility is for payment of service tax. But the procedure of availing the credit on all the input services received in their DTA unit is wrong and the appellant is not eligible to avail the credit in their DTA unit on input services rendered in their 100% EOU, since the DTA Unit and the EOU unit are required to avail and utilize the Cenvat Credit separately with regard to Input Services actually received by them. Learned AR also draw our attention to the relevant provisions of Cenvat Credit Rules, 2004 which states as reproduced below :- "Cenvat Credit Rules, 2004: Rule 9 Sub Rule (2): No CENVAT credit under sub-rule(1) shall be taken unless all the particulars as prescribed under the Central Excise Rules, 2002 or the Service Tax Rules, 1994, as the case may be, are contained in the said document: Provided that if the said document does not contain all the particulars but contains the details of duty or service tax payable, description of the goods or taxable service, assessable value, Central Excise or Service tax Registration number of the perso....