TMI Blog2013 (11) TMI 1684X X X X Extracts X X X X X X X X Extracts X X X X ..... nt is engaged in the manufacture of paints and varnishes and availed the benefit of Cenvat credit of duty paid on inputs, capital goods and input services. During the course of audit of the records, it was found that appellants had availed credit of Service Tax paid on input service which was distributed to the units by the corporate office as Input Service Distributor (ISD). The credit was earned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Kar.)] and submits that the issue is squarely covered by these decisions. Further he also submits that the show cause notice was issued on 17-9-2010 and even the order adjudicating authority has not indicated on what basis suppression could have been invoked. 3. I have considered the submissions made by both the sides and gone through the records. According to Rule 7 of Cenvat Credit Rules (CC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mitation, appellants have a strong case since when the rule itself does not provide for denial of credit in the absence of any of the grounds, the appellants were entitled to bona fide belief of admissibility. In the absence of any finding of inadmissibility of the corporate office for the credit and in the absence of any finding regarding non-fulfilment of conditions under Rule 7 of CCR, the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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