TMI Blog2016 (11) TMI 995X X X X Extracts X X X X X X X X Extracts X X X X ..... h “needs detailed verification”. This cannot be considered as denial of credit and therefore, the argument of learned AR does not hold much force. Reliance placed on the decision of the case of Commissioner of Central Excise, Bangalore-I Commissionerate Versus Ecof Industries (P.) Ltd. [2011 (4) TMI 560 - KARNATAKA HIGH COURT] where similar issue was decided and it was held that the assessee is entitled to distribute the cenvat credit on the input services on its manufacturing unit or other units providing the output services Appeal allowed - decided in favor of appellant. - Appeal No. E/121/11 - Order No.A/86901/16/SMB - Dated:- 31-3-2016 - Shri Raju, Member (Technical) Shri D.R. Gadekar, Consultant, for Appellant Shri N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t and appeal is allowed with consequential relief, if any. The demand of duty was revised to a lower value by the Assistant Commissioner, who dropped the demand of ₹ 1,49,706/- and confirmed the revised demand of ₹ 1,62,954/-. The matter was agitated before the Commissioner (Appeals), who further dropped a demand of ₹ 60,924/- and therefore, in the final analysis, the demand of ₹ 2,10,630/- was dropped and ₹ 1,02,030/- was confirmed and equal amount of penalty was imposed under Section 11AC of the Central Excise Act, 1944. 2. The learned Counsel for the appellants argued that there is no restriction on distribution of credit by the ISD. He referred to Rule 7 of the Cenvat Credit Rules, which according ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... details of services provided and mentioned to the above invoices, I find that most of the entries are for the activities related to Nivea group of products which are manufactured in the appellants unit. Therefore, the CENVAT Credit cannot be disallowed. However, there are some entries mentioning Bangalore Plant, insurance policy of other units, etc which needs detailed verification. Therefore, I set aside the impugned Order-in-Original with a direction to Divisional Assistant Commissioner to re-quantify the amount of CENVAT Credit on account of Service Tax to be disallowed in the light of above discussion within a fortnight. The penalty imposed under Section 11AC stands automatically reduced to that extent. The Order-in-Original is modifie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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