TMI Blog2014 (8) TMI 530X X X X Extracts X X X X X X X X Extracts X X X X ..... tion filed by the applicant. However, considering the facts and circumstances of the case, we extend the period of compliance for further 8 weeks - Decided in favour of assessee. - E/40205/2013-DB - MISC ORDER No.40620/2014 - Dated:- 17-3-2014 - P K Das And Rakesh Kumar, JJ. For the Appellant : Mr R Raghavan, Adv. For the Respondent : Mr Parmod Kumar, JC (AR) PER : P K Das 1. The applicant filed appeal along with an application for waiver of predeposit of CENVAT credit of ₹ 20,16,92,541/- with interest and penalty of ₹ 20,16,92,541/- under Section 35F of Central Excise Act, 1944. By Misc Order No.42956, 42957/2013 dated 31.12.2013, the applicant was directed to make a predeposit of ₹ 8,00,00,000.00 (R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relied upon the decision of the Hon'ble Karnataka High Court in the case of CCE Bangalore-III Vs Mcdowell Co. Ltd. 2005 (186) ELT 145 (Kar.) and the decision of Hon'ble Bombay High Court in the case of Baron International Ltd. Vs UOI 2004 (163) ELT 150 (Bom.). He submits that the plea raised by the learned Advocate insofar as credit relatable to exempted unit was invariably deducted in the invoices issued by ISD, was not stated in reply to show cause notice or even in the memorandum of appeal before the Tribunal or before the adjudicating authority. He submits that this Tribunal passed order on the basis of interpretation of Rule 7(b) of Cenvat Credit Rules as alleged in show-cause notice. 4. After hearing both sides and on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 ₹ 6 crores, Prima facie, there is no material available that the method of distribution of service tax cred ..... X X X X Extracts X X X X X X X X Extracts X X X X
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