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2016 (11) TMI 477 - AT - Central ExciseCENVAT Credit - input service distributor - cross unit utilization - security service - general insurance service - consultancy engineering services - input services received at Sikkim unit, having no nexus with manufacturing at their Dadra unit, therefore, not eligible to CENVAT Credit being fall outside the scope of definition of input service prescribed at Rule 2(l) of CENVAT Credit Rules 2004 - Held that: - the Appellants on the basis of invoices issued under Rule 4A of Service Tax Rules, 1994 by their head office registered as an input service distributor availed CENVAT Credit at their manufacturing facility at Dadra unit. It is also not in dispute that the entire credit relates to the input services viz. security service, general insurance service, consultancy engineering services received and utilized at their Sikkim unit. It is the contention of the Appellant that as per the existing provisions during the relevant period, there was no necessity that the input services be received and utilized in the factory of the manufacturer where CENVAT Credit was availed. Reliance placed on the decision of the case of CCE Bangalore-I Vs ECOF Industries Pvt. Ltd 2011 [2011 (2) TMI 1130 - KARNATAKA HIGH COURT] where it was held that The law mandates that the manufacturer who wants to avail the benefit of this service tax if he has more than one unit he should also get registered himself as a service provider and then, he would be able to collect all the input service tax paid in all its units and accumulate them at its head office and distribute the said credit to its various units. Merely because the input service tax is paid at a particular unit and the benefit is sought to be availed at another unit, the same is not prohibited under law. CENVAT credit allowed - appeal allowed - decided in favor of appellant.
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