TMI Blog2014 (11) TMI 115X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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 mention in the relevant 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 (original authority had approved of such distribution) cannot be upheld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner (AR) JUDGEMENT Per: H.K. Thakur; 1. These appeals have been filed by the appellants against OIO No.02/MP/VAPI/2010, dt.08.02.2010/05.03.2010 passed by Commissioner of Central Excise, Customs Service Tax Vapi under which demands have been confirmed for wrongly taken CENVAT Credit taken by appellant M/s Parle Agro Pvt.Ltd., Silvassa. Penalties were also imposed upon M/s Parle Agro Pvt.Ltd. Silvassa and M/s Parle Agro (Pvt.) Ltd., Andheri (East), Mumbai. 2. Brief facts of the case are that main appellant M/s Parle Agro Pvt.Ltd., Silvassa are engaged in the manufacture of non-alcoholic beverages base (NABB) or soft drink concentrate. Main appellant took CENVAT Credit of Advertisement services availed by the Headquarters ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be cleared by the frachisees under the brand name owned by the appellants. The said fruit juices contain MRP (maximum retail price) as determined by the appellants. 3.1 After explaining the control over the brand name and the manufacturing activities it was argued by the ld.Advocate that services availed by the Headquarters with respect to advertisement of the end products Frooti and Appy will be admissible as input services under Rule 2(l) of CENVAT Credit Rules, 2004, for NABB concentrate manufactured by the appellants as increase in production of the end products, for which advertisements is done, will also increase the consumption of their final products NABB. That the cost of Advertisement done by the appellants gets included ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (A.R.) appearing on behalf of the Revenue defended the orders passed by the adjudicating authority. It was his case that Department could only detect the irregular credit taken on the basis of investigations done on an information. That Revenue had no knowledge that ISD documents are for Service Tax paid with respect to exempted final product. He made the bench go through Paras 28 34.8 of the order passed by the adjudicating authority to argue that OIO dt.8.2.2010/5.3.2010 has been correctly passed against the appellants. 5. Heard both sides and perused the case records as well as the written submissions made by the appellants. Ld.Advocate appearing on behalf of the appellants has mainly argued the case of his clients on the grounds t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w:- 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 mention in the relevant rules. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on an information followed by detailed investigation. Therefore, extended period will be applicable in the present proceedings. Appellant also never approached the Revenue at any stage to seek clarification whether such a credit of Advertisement services availed with respect to exempted final products Frooti and Appy will be admissible or not. In view of these observations extended period is correctly invoked and penalties have been correctly imposed upon the appellants. We do not find any reason to interfere with the order passed by the adjudicating authority. 7. Appeals filed by the appellants are dismissed by upholding the Order-in-Original passed by the adjudicating authority. (Pronounced in Court on 28.10.2014) - - TaxTM ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
