TMI Blog2018 (2) TMI 381X X X X Extracts X X X X X X X X Extracts X X X X ..... e tax paid and secondly, the credit of service tax attributable to service used shall not be distributed in a unit exclusively engaged in the manufacture of exempted goods or providing of exempted services. Appeal allowed - decided in favor of appellant. - E/20654/2014-DB - Final Order No. 23246 / 2017 - Dated:- 5-12-2017 - Shri S. S. Garg, Judicial Member And Shri V. Padmanabhan, Technical Member Shri N. Anand, Advocate For the Appellant Shri N. Jagadish, Superintendent (AR) For the Respondent ORDER Per : S. S. Garg The Revenue has filed an application seeking early hearing of the case on account of the huge revenue involved in the present appeal. After considering the reasons given in the early hearing applic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Input Service Distributor. 2.2. M/s. ILTD is a Division of the ITC Group of Companies and is involved in the activity of processing and supply of leaf tobacco. The said activity neither amounts to manufacture nor amounts to providing services. Further, M/s. ILTD is not an office of the manufacturer, producer of finished goods, or service provider. It is a separate Division of the ITC Group that is involved with activities in the area of processing and supply of tobacco leaves and is no way connected with any of the activities of the assessee other than supply of processed tobacco leaves. M/s. ILTD does not have any control over any of the cigarette manufacturing units of the ITC group whatsoever. It is evident from Rule 2(m) read with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tainable in law as the same has been passed without considering the facts and the law and also the judicial precedent on the same issue. He further submitted that the issue involved in the present appeal is no more res integra and is covered in favour of the appellant by the Division Bench of this Tribunal on identical fact. He further submitted that the Division Bench of this Tribunal vide its order dated 12.07.2016 in the appellant s own case has held that the assessee is entitled to cenvat credit of service tax. He further submitted that this Tribunal while allowing the appeal of the assessee earlier has merely relied upon the judgment of the Hon ble High Court of Karnataka in the case of CCE Vs. ECOF Industries Ltd. 2011-TIOL-770-HC-KAR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its providing output service, subject to the following conditions, namely:- (a) the credit distributed against a document referred to in rule 9 does not exceed the amount of service tax paid thereon, or (b) credit of service tax attributable to service use in a unit exclusively engaged in manufacture of exempted goods or providing of exempted services shall not be distributed. Therefore, only two limitations are put for the distribution of credit by an input service distributor. Firstly, it cannot exceed the amount of service tax paid and secondly, the credit of service tax attributable to service used shall not be distributed in a unit exclusively engaged in the manufacture of exempted goods or providing of exempted service ..... X X X X Extracts X X X X X X X X Extracts X X X X
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