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2021 (7) TMI 296 - AT - Central ExciseDistribution of credits on input services - distribution on a pro-rata basis proportionate to the turnover of each unit between the manufacturing plants of Parle Biscuits and its contract manufacturing units - correctness of issuance of Input Service Distributors’ invoice by Parle to its contract manufacturing unit - contract manufacturing carried out in terms of N/N. 36/2001-CE (NT) - HELD THAT:- The Division Bench, while hearing Excise Appeals, expressed reservations about the proposition of law laid down by the Division Bench in Sunbell Alloys Co. Of India Ltd. vs. Commissioner of Central Excise & Customs, Belapur [2014 (2) TMI 297 - CESTAT MUMBAI] and also noticed that a Division Bench of the Tribunal in Colgate Palmolive (I) Ltd. vs. Commissioner of Central Excise, Mumbai-I [2011 (2) TMI 57 - CESTAT MUMBAI] had taken a contrary view. The Division Bench, therefore, referred the questions for consideration by a Larger Bench of the Tribunal. The Larger Bench of the Tribunal in M/S. KRISHNA FOOD PRODUCTS, M/S. MARIAMMA R. IYER, M/S. PARLE BISCUITS PVT LTD. VERSUS THE ADDITIONAL COMMISSIONER OF CGST & C. EX [2021 (5) TMI 906 - CESTAT NEW DELHI] has held that Parle was justified in distributing credits on input services attributable to the final product on a pro-rata basis proportionate to the turnover of each unit between the manufacturing plants of Parle and its contract manufacturing units, including the appellant, under rule 7(d) of the CENVAT Rules. In view of the aforesaid answer given by the Larger Bench of the Tribunal, the order passed by the Commissioner (Appeals) cannot be sustained and is set aside - appeal allowed - decided in favor of appellant.
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