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2017 (3) TMI 1438 - CESTAT NEW DELHICENVAT credit - benefit of N/N. 50/2003-CE - appellant paid duty for its one unit, and for other 4 units availed area based exemption. In respect of the some common input services, which are common to all the five manufacturing units, appellant took Cenvat credit of the service tax paid - Held that: - There is no dispute that the six services in question, for which Cenvat credit has been taken by ISD and distributed entirely to non duty paying unit Udaipur are specified in Rule 6(5) - in terms of Rule 6(5) of CeCR, the full Cenvat credit will be available to the assessee, if such services were used in a manufacturing unit making both, the exempted as well as dutiable goods. In the present case, the full Cenvat credit has been availed by the ISD who is required to distribute the same to various units as per Rule 7of CCR. The Rule 7 only enforces the condition that credit of service tax attributed to services used in units exclusively engaged in the manufacture of exempted goods or providing exempted services shall not be distributed - there is nothing on record to suggest that any of the services have been used only in the units manufacturing exempted goods. In fact, the nature of services tells us that these are used at the level of corporate of the manufacturing units of the assessee. Under the circumstances, restricting the distribution of Cenvat credit in terms of Rule 7 is not justifiable. The restrictions are there only in distribution of credit in respect of services which are exclusively used in relation to manufacturing of exempted goods. Credit allowed - appeal allowed - decided in favor of appellant-assessee.
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