TMI Blog2017 (12) TMI 1292X X X X Extracts X X X X X X X X Extracts X X X X ..... turing unit, the head office exists only for the purpose and support of the manufacturing unit and they are rather one and the same and accordingly all services received at their office are in fact equivalent to services received at the sole manufacturing unit. Appeal allowed - decided in favor of appellant. - E/1420/2011-EX[DB] - A/71679/2017-EX[DB] - Dated:- 14-6-2017 - Mr. Anil Choudhary, Member (Judicial) And Mr. Anil G. Shakkarwar, Member (Technical) Shri Atul Gupta, Advocate for Appellant Shri Mohd Altaf, Assistant Commissioner (AR), for Respondent ORDER Per : Anil Choudhary The present appeal is filed by the appellant against Order-in-Original No.35/COMMR/M-II/2011 dated 25/03/2011 passed by Commission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts under Rule 9 of Cenvat Credit Rules, 2004. It was also alleged that as corporate office of the appellant was not registered as ISD (the same was stated to be registered on 19th February, 2008), so no credit of service tax in respect of input services received by the corporate office or deports could be passed on to the manufacturing unit. Accordingly, the SCN proposed to recover Cenvat credit of service tax amounting to ₹ 1,22,27,236/- as Cenvat credit wrongly availed by the appellant against the invoices, bills, challans etc. issued by the service providers in favour of their corporate office or depots during the period in dispute from February, 2005 to February, 2008 in contravention of provisions of Rule 9 read with Rule 7 of C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... credit availed by the assessee though the same was inadmissible . So far on the issue of registration of the unit as ISD, the Hon ble High Court observed that:- it is true that the Government had framed Rules of 2005 for registration of ISD, who would have to make application to the Department in terms of Rule 3 Sub-rule (2) of Rule 3. Further, required, any provider of taxable service whose aggregate value of taxable service exceeds certain limit to make an application for registration within the time prescribed. However, there is nothing in the said Rules of 2005 or in the Rules of 2004, which would automatically and without any additional reasons disentitle an ISD from availing Cenvat credit unless and until such registration was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Having considered the rival contentions and following the ruling of Hon ble Gujarat High Court in the case of Demosha Chemical Pvt. Ltd. (supra) we hold that availment of Cenvat credit in absence of the head office being registered as ISD, there was no illegality in taking the Cenvat credit. Further, we hold that as there is only one manufacturing unit, there is no illegality in distributing the credit and/or in availing of credit by the manufacturing unit of the appellant under the facts and circumstances. In fact, there being only one manufacturing unit, there is no question of distribution of credit involved. We also hold that when there is only one manufacturing unit, the head office exists only for the purpose and support of the manu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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