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2019 (3) TMI 413 - AT - Central ExciseCENVAT Credit - input service distribution - credit availed on common input services, Chartered Accountants Services, Banking & other Financial Services, Management, Consultants Services to the registered office of the appellant having several units without obtaining license for input service distribution - Rule 7 of CCR - Held that:- It has been clearly mentioned that the input service distributor May distribute the CENVAT Credit in respect of service tax paid on the input service to its manufacturing units (whether registered or otherwise) providing output services subject to certain conditions which was enumerated in the original draft with two conditions and two explanations while in 2012 with two conditions and three explanations. Therefore, from a plain reading of Rule 7, it is very much clear that the service distributor i.e. the main unit may distribute CENVAT Credit or hold the credit with itself. If it intends to distribute CENVAT Credit, then as per the conditions, it has to register itself and follow the rest of conditions like pro rata distribution on the basis of prediction as well as no distribution to the unit which is wholly providing exempted service. This being the dictate of the rule, it can be said that there is no provision under the CENVAT Credit Rules for mandatory registration for IST. Moreover, there is no restriction in the rule that the Central unit cannot avail the whole credit accruing through its unit for common input services even if it has got a centralized purchase sale and accounting system. Credit rightly availed - appeal allowed - decided in favor of appellant.
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