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2016 (12) TMI 982 - AT - Central ExciseDenial of CENVAT credit - denial on the ground that service not related to product - Held that: - I find that the fact is not under dispute that though input service on which the credit was disputed was not used in the factory of the appellant but it is related to the product Nescafe and Maggie Noodles which are manufactured in the appellant company's different factory. As regard the provision for distribution of the credit, there is no condition of one to one correlation between the credit distributed and the quantum of service received and used by a particular factory. Though the service is related to the product which is manufactured in the appellants company in other factories. But all the factories belonging to one company and in the absence of any provision of one to one correlation the credit can be distributed to any factory of one company - reliance placed on the decision of the case of Commissioner of C.Ex., Bangalore-I Vs. Ecof Industries Pvt. Ltd. [2011 (2) TMI 1130 - KARNATAKA HIGH COURT], where it was held that 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 Even though the service is not used in the appellant factory, but received and used in different factory of the same company, credit cannot be denied - appeal allowed - credit allowed - decided in favor of assessee.
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