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2013 (11) TMI 509 - AT - Service TaxStay application - Distribution of cenvat credit of service tax - input service distributor (ISD) - Held that:- Even if a service has been procured in connection with the manufacture of the goods to be produced by the appellant in future and even if it so happens that ultimately the goods are not manufactured, yet the service would be an input service used in or in relation to the manufacturing activity of the appellant and therefore, credit cannot be denied on the ground that the ultimate product in respect of which the service was availed did not get manufactured. Similarly, the Hon'ble High Court of Karnataka in the ECOF Industries Pvt. Ltd. case (2011 (4) TMI 560 - KARNATAKA HIGH COURT) held that distribution of credit can be done subject to satisfaction of two conditions, namely, (i) Credit distributed does not exceed the amount of service tax paid and (ii) the credit of service exclusively used for exempted goods or exempt service is not distributed. From the records of the case, it is seen that there is no allegation against the appellant that they have violated any of these two conditions - Stay granted.
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