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2022 (5) TMI 75 - CESTAT NEW DELHICENVAT Credit - appellant is outsourced manufacturing unit - distribution of input service credit on pro-rata basis proportionate to the turnover of each unit between the manufacturing plants of M/s. PBPL and its contract manufacturing units including M/s. Balaji Edibles i.e. the appellant - violation of Rule 7 of CENVAT Credit Rules 2004 - HELD THAT:- From the decision relied upon by the appellant i.e. M/S. KRISHNA FOOD PRODUCTS, MS. MARIAMMA R. IYER AND M/S. PARLE BISCUITS PVT LTD. VERSUS THE ADDITIONAL COMMISSIONER OF CGST & C. EX [2021 (7) TMI 296 - CESTAT NEW DELHI] it is clear that the said issue has already been decided by the larger bench of this Tribunal hence remains no more res integra. Further perusal of the said decision shows that the decision in the case of SUNBELL ALLOYS CO OF INDIA LTD & MACHSONS PVT LTD VERSUS COMMISSIONER OF CENTRAL EXCISE & CUSTOMS [2014 (2) TMI 297 - CESTAT MUMBAI] as have been relied upon by Commissioner while passing the order under challenge have also been discussed and distinguished by the Larger Bench of this Tribunal. It is also perused that the said decision has already been followed in similar facts and circumstances by this Bench n the case of AJMER FOOD PRODUCTS PVT LTD. VERSUS COMMISSIONER OF CGST & CENTRAL EXCISE JAIPUR II [2021 (9) TMI 4 - CESTAT NEW DELHI]. No distinguished fact is apparent on record in the present appeal nor could have been brought to the notice by the learned DR, who rather expressed no objection for following the decision of the Larger Bench. M/s. PBPL was justified in distributing credits on input services attributable to final product on pro rata basis proportionate to the turnover of each unit between the manufacturing plants of M/s. PBPL and its contract manufacturing units including the appellant under Rule 7(d) of the CENVAT Credit Rules - the appellant is held entitled to avail the CENVAT credit where input services is attributed to the goods on which the excise duty is paid and includes the cost of services on which credit was taken. Appeal allowed - decided in favor of appellant.
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