TMI Blog2009 (10) TMI 171X X X X Extracts X X X X X X X X Extracts X X X X ..... stribution of the credit. The first restriction is that the credit should not exceed the amount of service tax paid. The second restriction is that the credit should not be attributable to services used in manufacture of exempted goods or providing of exempted services. There are no other restrictions under the rules, As such, restricting the distribution of service tax credit in a manner as has been done by the impugned order of the lower appellate authority cannot be upheld, allow the appeals. - E/50, 339 & 621 OF 2009 - 1195-1197 OF 2009 - Dated:- 9-10-2009 - D.N. PANDA, JUDICIAL MEMBER AND DR. CHITTARANJAN SATAPATHY, TECHNICAL MEMBER B.N. Gururaj for the Appellant. U. Raja Ram for the Respondent. ORDER Dr. Chittaranjan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efers to Rule 3 of the CENVAT Credit Rules, 2004 to support the claim of the Department that Service Tax credit relating to one unit should not be distributed to another. 5. After hearing both sides, we find that the rule 3 merely says that a manufacturer or producer of final products or a provider of taxable service shall be allowed to take credit of any input services received by the manufacturer of such final product or provider of output services. The availability of credit therefore is related to the manufacturer of goods or provider of output services as a whole and not restricted to any particular unit of the manufacturer/service provider. 6. The rule 7 referred to by the ld. Advocate reads as follows: 7. Manner of distrib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... take a separate registration. 8. The combined reading of the rule 7 and the clarificatory circular dated 23-8-2007 clearly shows that there are only two restrictions regarding the distribution of the credit. The first restriction is that the credit should not exceed the amount of service tax paid. The second restriction is that the credit should not be attributable to services used in manufacture of exempted goods or providing of exempted services. There are no other restrictions under the rules, the restrictions sought to be applied by the Department in this case in limiting the distribution of the service tax, credit made in respect of the Malur Unit on the ground that the services were used in respect of the Cuttack Unit finds no men ..... X X X X Extracts X X X X X X X X Extracts X X X X
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