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2023 (12) TMI 845 - CESTAT CHENNAIRecovery of wrongly availed CENVAT Credit - common input services used in or in relation to manufacture as well as trading - Head Office distributed credit availed on common input services used for both manufacture of finished goods as well as trading of goods - periods October 2012 to June 2013 and July 2013 to June 2014 - HELD THAT:- The foremost argument put forward by the Ld. counsel for the appellant is that the Department ought to have issued Show Cause Notice to the Head Office as it is the Head Office which has availed credit and distributed to the appellant as per the provisions of CENVAT Credit Rules, 2004. The Show Cause Notice is issued invoking Rule 14 of CENVAT Credit Rules, 2004. The said Rule states as credit wrongly ‘availed or utilized’. The credit is utilized by the appellant. In such circumstances, the Show Cause Notice issued to the appellant alleging wrongful availment of credit, is valid though it is the Head Office which has distributed the credit. The second argument advanced by the appellant is that the Head Office has been maintaining separate accounts and that the Head Office has not distributed credit of input services pertaining to trading. The appellant has furnished detailed reconciliation statement. However, this requires to be verified - the matter requires to be remanded to the adjudicating authority who is directed to verify the contention of the appellant that credit pertaining to trading has not been distributed by Head Office and availed by the appellant. The adjudicating authority is also directed to verify the reconciliation statement furnished by appellant. The impugned order is set aside - Appeal is allowed by way of remand.
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