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2014 (2) TMI 823 - AT - Central ExciseAvailment of CENVAT Credit - Input Service Distributor - Violation of Rule 7 of Cenvat Credit Rules, 2004 - Denial of excess input service credit - Held that:- other units of input service distributor are exclusively engaged in the manufacture of exempted goods. But, ISD issued cenvat invoice on the basis percentage of overhead expenses to the total expenses. Thus, the total expenses would include expenses of other units engaged exclusively in the manufacture of exempted goods, which is in clear violation of the condition of Rule 7 (b) of Cenvat Credit Rules - prima facie there is violation of condition of Rule 7 of the said Rules. In our considered view, the adjudicating authority rightly proceeded on the basis that in this case, ISD should be distributed based on the template of sale revenue of individual unit, when other units are exclusively exempted unit. Prima facie, there is no material available that the method of distribution of service tax credit was known to the department - The applicant failed to make out a prima facie case for waiver of predeposit of entire amount of duty along with interest and penalty - Conditional stay granted.
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