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2019 (6) TMI 855 - AT - Central ExciseCEVAT credit - input service distribution - main allegation in the SCN is that the ISD has wrongly distributed the service tax credit by not following the principle of proportionate to the turnover of sales. Rule 7 of CCR 2004 as applicable during the relevant period and upto 01.04.2012 - Rule 7 of CCR 2004 - extended period of limitation - HELD THAT:- In the present case the entire demand is not sustainable on the ground that Rule 7 of CCR 2004 during the relevant period did not prescribe any formula for distribution of cenvat credit by the ISD and therefore no liability can be fastened on them. Extended period of limitation - HELD THAT:- No case has been made out by the department for invoking extended period of limitation in as much as mere not indicating the formula adopted for distribution of cenvat credit does not amount to suppression of facts as there was no obligation upon the assessee to disclose the formula adopted by them. Therefore, even on limitation we rule in favour of the assessee. There is also a force in the argument of the assessee that the cenvat credit distributed by the ISD cannot be modified by a recipient of the ISD invoices namely appellant. Appeal allowed - decided in favor of appellant.
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