TMI Blog2015 (9) TMI 1576X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant. - E/1526/2010-MUM - A/88967/17/SMB - Dated:- 14-9-2015 - Shri Anil Choudhary, Judicial Member Present for the Appellant: Shri S. Chandrasekharan, Assistant Manager Excise Present for the Respondent: Shri V.K. Shashtri, Assistant Commissioner (A.R.) ORDER Per: Anil Choudhary The appellant Mahindra Mahindra Ltd. is in appeal against Order-in-Appeal dated 08.4.2010 passed by the Commissioner (Appeals) Pune-l whereby the Cenvat Credit distributed by the Appellant from its Wagholi Unit to their Kanhe Unit have been found to be lacking nexus and or improperly distributed. 2. The appellant Head Office is registered as an ISD. They have two units, one at Wagholi and another at Kanhe for manufacture of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ircular No.97/8/2007-ST dated 23.8.2007. Show cause notice was adjudicated on contest. Proposed demand was confirmed observing that Cenvat Credit is available for Wagholi Unit as per Rule 3 of CCR. However, the same input service cannot be called as input services for Kanhe Unit as per the definition of input services and hence the credit so taken or transferred was held to be wrongly availed and the same was disallowed. Penalty was also imposed under Rule 15 of CCR read with Section 11 A of the Act, along with interest. 4. Being aggrieved, the appellant preferred appeal before the Commissioner (Appeals), who vide the impugned order has been pleased to reject the appeal holding that there is a lack of nexus, Rule 2 of CCR requires that s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it distributed should not exceed the amount of Input credit availed and second restriction is that in case of credit received in unit which manufactures exclusively exempted goods/services, then in such case credit cannot be distributed. He further strongly argues that none of these conditions being attracted, the credit availed by way of ISD invoice transferred from Wagholi unit to Kanhe unit is wholly allowable. The Courts below have erred in observing that the credit is not transferable and there is lack of nexus within the meaning or Rule 2(l) of CCR in spite of the fact that both the units are manufacturing units having dutiable outputs. Accordingly, the appellant prays for allowing the appeal. 6. Ld. AR for Revenue relied on the im ..... X X X X Extracts X X X X X X X X Extracts X X X X
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