TMI Blog2016 (12) TMI 982X X X X Extracts X X X X X X X X Extracts X X X X ..... is related to the product which is manufactured in the appellants company in other factories. But all the factories belonging to one company and in the absence of any provision of one to one correlation the credit can be distributed to any factory of one company - reliance placed on the decision of the case of Commissioner of C.Ex., Bangalore-I Vs. Ecof Industries Pvt. Ltd. [2011 (2) TMI 1130 - KARNATAKA HIGH COURT], where it was held that Merely because the input service tax is paid at a particular unit and the benefit is sought to be availed at another unit, the same is not prohibited under law Even though the service is not used in the appellant factory, but received and used in different factory of the same company, credit cannot be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... services are not related. There is no one to one correlation provided under the law. There is no dispute that the services are tax paid and received by the Head Office. Therefore, the credit should not have been denied by the lower authority. He submits that the identical issue has been settled by the Hon'ble Karnataka high court in the case of Commissioner of C. Ex., Bangalore-I Vs. Ecof Industries Pvt. Ltd. 2012 (277) ELT 317 (Kar.). He also placed reliance on the following Judgments: (i) Commissioner of C.Ex., Bangalore-I Vs. Ecof Industries Pvt. Ltd. 2011 (271) E.L.T. 58 (Kar.) (ii) Doshion Ltd.Vs. Commissioner of Central Excise, Ahmedabad 2013 (288) E.L.T. 291 (Tri.-Ahmd.) (iii) Commissioner of Central Excise Vs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade by both the sides, I find that the fact is not under dispute that though input service on which the credit was disputed was not used in the factory of the appellant but it is related to the product Nescafe and Maggie Noodles which are manufactured in the appellant company's different factory. As regard the provision for distribution of the credit, there is no condition of one to one correlation between the credit distributed and the quantum of service received and used by a particular factory. Though the service is related to the product which is manufactured in the appellants company in other factories. But all the factories belonging to one company and in the absence of any provision of one to one correlation the credit can be dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s therefore not the mandate of Rule 7 of the Cenvat Credit Rules. 6. Under these circumstances, we confirm the view taken by the Tribunal. We do not see any substantial question of law that arises for consideration in this appeal. Accordingly, the appeal being devoid of merits is dismissed. In view of the above judgment even though the service is not used in the appellant factory, but received and used in different factory of the same company, credit cannot be denied. Following the ratio of the above decision and the discussion made hereinabove, I am of the considered view that the appellant is legally entitled for the Cenvat Credit. The impugned order is set aside, the appeal is allowed. (Pronounced Dictated in court) - - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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