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2016 (11) TMI 995 - CESTAT MUMBAI

2016 (11) TMI 995 - CESTAT MUMBAI - TMI - Denial of CENVAT credit - input service distributor - input service credit distributed by the ISD were availed in a different manufacturing unit i.e. the sister concern of the appellant - Held that: - I find that the appellants have availed credit on the strength of an ISD document issued in respect of services availed by their sister unit located at Bangalore - there is no final finding in respect of the disallowance of credit availed in respect of serv .....

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] 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.N. Prabhudesai, Supdt. (AR), for Respondent Per: Raju The appellants, M/s J.L. Morison (I .....

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he Commissioner (Appeals) remanded the case back to the Assistant Commissioner observing as under: - While going through the 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 ver .....

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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 argue .....

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spect of services availed by their sister unit and had remanded the matter only for quantification to the Assistant Commissioner. He argued that since the appellants have not challenged the said order, they cannot now claim credit in respect of the services availed by their sister unit at Banagalore. To support this assertion, he relied on the decision of the Tribunal in the case of B.P.R. Tex Prints Ltd. 2001 (136) ELT 935 (Tri-Del). The said decision has been upheld by the Hon'ble Supreme .....

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er (Appeals) while remanding the matter to the Assistant Commissioner has observed as follows: - While going through the 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 verific .....

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t of the disallowance of credit availed in respect of services availed by their sister unit at Banagalore. The said order only states that there are some entries mentioning Bangalore Plant, Insurance policy of other unit which needs detailed verification . This cannot be considered as denial of credit and therefore, the argument of learned AR does not hold much force. Hon'ble Karnataka High Court in case of ECOF (supra) has observed as under: - 4. -The assessee had availed the Service tax cr .....

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