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2021 (9) TMI 1198 - AT - Central ExciseCENVAT Credit - input services - common input service for taxable as well as exempt units - whether the appellant in their Koshamba Unit is eligible for credit only proportion of the common input service attributed to the said unit only and they are not entitle for the Cenvat credit to the proportion attributed to Jambusar Unit? - Rule 7(d) of Cenvat Credit Rules, 2004 - HELD THAT:- Reliance placed in the case of GLOSTER CABLES LTD. UNIT I VERSUS COMMISSIONER OF CENTRAL TAX, MEDCHAL COMMISSIONERATE, [2018 (5) TMI 660 - CESTAT HYDERABAD] where it was held that the assessee has not violated the CENVAT Credit Rules as they existed during the period by not distributing the credit of Service Tax for common services between two Units. It is settled that even though there is a provision for proportionate distribution of Cenvat Credit Rule 7(d) of Cenvat Credit Rule, 2004 during the relevant period but as per the interpretation it was held that since the word “may” was there in the Rule which was substituted with word “shall” from the amendment in 2006, it was option for the Assessee either to avail the entire credit in one unit or distribute the same proportionately to different unit, therefore even if the appellant have availed the Cenvat Credit in respect of common input service in one unit only, the same is not in correct or illegal. The credit is allowed - appeal allowed - decided in favor of appellant.
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