9911796707
TMI Blog2014 (2) TMI 823X X X X Extracts X X X X X X X X Extracts X X X X ..... the jurisdiction of LTU, Chennai. The application for change of cause title is allowed. Accordingly, the Registry is directed to amend the respondent's name as "Commissioner of Service Tax, Large Taxpayer Unit, Chennai" in all records. 2. The assessee is engaged in the manufacture of Quartz Analog Watches and parts. They have availed cenvat credit on the basis of documents issued by "Input Service Distributor" (in short 'ISD") under Rule 7 of Cenvat Credit Rules, 2004 (in short, C.C.R). Two show cause notices were issued proposing to deny excess input service credit distributed by ISD in contravention of Rule 7 (b) of C.C.R, 2004 during the period October 2006 to March 2011 of Rs.20,16,92,541/- and May 2012 to March 2012 of Rs.3,72,22,810 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) STR 100 (Kar.) and the decision of the Tribunal in the case of Doshion Ltd. Vs CCE Ahmedabad -2013 (288) ELT 291 (Tri.-Ahmd.) and Castrol India Ltd. Vs CCE Vapi -2013 (291) ELT 469 (Tri.-Ahmd.) 4. On the other hand, Ld. Authorised Representative on behalf of Revenue submits that the appellant is a part of Titan Group of Industries, which has various units located in different parts of the country. He submits that other units situated at Dehradun, Rourkee, etc. are all exempted units from payment of duty on the basis of area based exemption notification. He submits that credit was denied for violation of Rule 7 (b) read with Rule 6 of CCR 2004. In this case, all the other units of the Titan Group are exempted from duty and therefore they ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vice distributor. The input service distributor may distribute the CENVAT credit in respect of the service tax paid on the input service to its manufacturing units or units providing output service, subject to the following conditions, namely : (a) the credit distributed against a document referred to in rule 9 does not exceed the amount of service tax paid thereon; (b) credit of service tax attributable to service used in a unit exclusively engaged in manufacture of exempted goods or providing of exempted services shall not be distributed; (c) credit of service tax attributable to service used wholly in a unit shall be distributed only to that unit; and (d) credit of service tax attributable to service used in more than one unit shall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prima facie8 we are unable to accept the contention of the learned advocate that there is no violation of condition of Rule 7 of the said Rules. In our considered view, the adjudicating authority rightly proceeded on the basis that in this case, ISD should be distributed based on the template of sale revenue of individual unit, when other units are exclusively exempted unit. The case law relied upon by the Ld. Advocate would perhaps, help the case of revenue as in the case of Ecof Industries Pvt. Ltd., the Hon'ble Karnataka High Court observed that ISD is entitled to distribute credit, subject to conditions prescribed in Rule 7 of C.C.R. Ld. advocate fairly submits that demand of normal period would be about Rs.6 crores. Prima facie, there ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
