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2014 (8) TMI 30 - AT - Service TaxWaiver of pre-deposit of duty - input service distributor (ISD) - Goods manufactured on behalf of other Company - Tax paid by company for whom goods were manufactured - Assessee availed credit for tax paid by that company - Held that:- The applicants are independent manufacturers and are paying Central Excise duty being independent manufacturer. As per the provisions of Rule 7 of the Cenvat Credit Rules, 2004 the input service distributor may distribute the Cenvat Credit in respect of Service Tax paid on the input service to its manufacturing units. A reading of the above provision of Rule 7 of the Cenvat Credit Rules, 2004 it is clear that input service distributor can distribute Service Tax paid on the input service to its manufacturing units. In the facts and circumstances of the present case, it cannot be said the applicants are manufacturing unit of M/s. Merck. Further, we find that as per the definition of ‘input service distributor’ as provided under Cenvat Credit Rules, 2004, ‘input service distributor’ means an office of the manufacturer or producer of final products or provider of output service. In view of the facts and circumstances of the present case, office of M/s. Merck cannot be held to be the office of the present applicants who are independent manufacturers. Invocation of extended period of limitation - Held that:- applicants were filing monthly returns in respect of credit availed and utilised towards payment of duty, hence, prima facie the argument that the demands are beyond the normal period of limitation is not sustainable. Following decision of Benara Valves Ltd. v. Commissioner of Central Excise [2006 (11) TMI 6 - SUPREME COURT OF INDIA] - Conditional stay granted.
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