TMI Blog2015 (11) TMI 651X X X X Extracts X X X X X X X X Extracts X X X X ..... the impugned order is set aside - Decided in favour of assessee. - E/60266/2013-EX(SM) - Final Order No. A/50582/2015-EX(SM)(BR) - Dated:- 24-2-2015 - Shri Ashok Jindal, Member (J) Shri Hemant Bajaj, Advocate, for the Appellant. Shri Devender Singh, AR, for the Respondent. ORDER The appellants is in appeal against the impugned order wherein the Cenvat credit of rent paid for the head office premises disbursed by ISD has been denied on the premise that services availed outside factory and not availed by the appellant itself. 2. Heard the parties. Considered the submissions. 3. In this case Cenvat credit sought to be denied to the appellant on the premise that services has been availed beyond the place of removal. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edit distributed against a document referred to in rule 9 does not exceed the amount of service tax paid thereon, or (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. Therefore, only two limitations are put for the distribution of credit by an input service distributor. Firstly, it cannot exceed the amount of service tax paid and secondly, the credit of service tax attributable to service used shall not be distributed in a unit exclusively engaged in the manufacture of exempted goods or providing of exempted services. 6. There is no allegation against the appellant that the provisions of Rule 7 has b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice 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. In case the Department wants to place such restriction as is sought to be placed in the case, the rule is required to be amended. Said order was challenged by the Revenue before the Hon ble High Court of Karnataka as reported in [2011 (271) E.L.T. 58 (Kar.)] wherein the Hon ble High Court has observed as under : 8. It is in this context, the definition of input service distributor makes it clear that a manufacturer or a producer of a final product or a provider of output service may have more than one unit and may be distributed in various parts of the country. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of exempted goods or providing of exempted services shall not be distributed. Therefore, only two limitations are put for the distribution of credit by an input service distributor. Firstly, it cannot exceed the amount of service tax paid and secondly, the credit of service tax attributable to service used shall not be distributed in a unit exclusively engaged in the manufacture of exempted goods or providing of exempted services. 7. As the services has been availed at the head office and same is a part of the appellant itself as a manufacturer. Therefore, I hold that appellant has availed the input service credit correctly. Consequently, the impugned order is set aside. Appeal is allowed with consequential relief, if any. (Dict ..... X X X X Extracts X X X X X X X X Extracts X X X X
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