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2019 (6) TMI 961 - CESTAT MUMBAICENVAT Credit - input service distributor - non-reversal of proportionate cenvat credit taken against Baddi factory at Himachal Pradesh, enjoying area based exemption - Rule 6(3) of the Cenvat Credit Rules 2004 - HELD THAT:- A cursory reading of Rule 6 would reveal that it deals with admissibility and non-admissibility of cenvat credit on input used in or in relation to the manufacture of exempted goods or for provision of exempted service or input service and it does not deal with manufacturer or service provider. As has been interpreted in several decisions “in or in relation to” is a broader concept which encompasses the entire manufacturing process or provision of services and it has not excluded input service provider (ISD) from its purview since Rule 7 also states that ISD would distribute cenvat credit in respect of service tax paid on the input service to its manufacturing units or units providing output service or outsource manufacturing units. Rule 6(5), as was existing during the relevant period, is applicable to the appellant and the benefit of the same was not extended to the appellant. Further there are three contradictory calculation sheets given in the show cause and by the lower authorities which is required to be reassessed on the basis of available records. This is a fit case which requires re-adjudication - appeal is allowed by way of remand to the Commissioner (Appeals) for re-assessment of duty liability only.
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