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2019 (7) TMI 257 - AT - Service TaxCENVAT Credit - Input Services Distributor - violation of rule 9 of CCR - manner of distribution of credit by an ISD - HELD THAT:- The two conditions are to be satisfied by an ISD and it is therefore, for the Revenue to give a finding as to the violation, if any, of any or both the conditions of Rule7. In the absence of any such specific findings, there cannot be any denial of the Cenvat credit distributed for consumption at the units. In the case on hand, without causing any investigation or enquiry as to the claim of the appellant, the adjudicating authority has doubted the availment of service tax credit by the ISD itself despite a clear pleading that the jurisdictional Commissionerate has accepted. Admittedly, the assessee-appellant has only sought for the consumption of credit that was claimed to be available with the appellant’s ISD which was explained to have been passed on. So, in the absence of any disputes as to the eligibility of credits availed by the ISD, the same cannot be questioned at the receiver’s end, who only sought for consumption of the same. What transpires from the above is clear, that there are only two limitations for distribution of credit by an ISD and in the case on hand, Revenue has not made out a case as to the non-satisfaction of the above two conditions. Consequently, there being no deficiency as to the eligibility of the ISD for distribution, no denial could be made in the hands of the recipient who has only consumed the same. The disallowance as well as the impugned order cannot sustain - Appeal allowed - decided in favor of appellant.
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