Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2015 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (11) TMI 681 - AT - Central ExciseDenial of CENVAT Credit - Revenue alleges that the credit distributed by Head Office is only permissible to the manufacturer/appellant but not the credit distributed by its Regional Offices - Held that:- Definition of input service distributor using the term an office is applicable to the appellant, but the term an office cannot be limited to a physical boundary but shall be interpreted as different boundaries which are offices and distribute the credit. The requirement is that credit distributing agency should be an office only but not a confined boundary. The reason is probably an office maintains record to verify the credit distributed. - assessee is not merely entitled to take credit of the unit where the products is manufactured, but it may also get credit of input tax paid by its head office to arrest cascading effect which is the mandate of Rule 7 of Cenvat Credit Rules, 2004. That Rule governs the procedure/manner of distribution of credit by a input service distributor prescribing two conditions. - There is no finding by the Adjudicating authority of any violation of the above conditions. Therefore there cannot be denial of Cenvat credit distributed to the appellant for its consumption. - Decided in favour of assessee.
|