TMI Blog2019 (3) TMI 413X X X X Extracts X X X X X X X X Extracts X X X X ..... rated in the original draft with two conditions and two explanations while in 2012 with two conditions and three explanations. Therefore, from a plain reading of Rule 7, it is very much clear that the service distributor i.e. the main unit may distribute CENVAT Credit or hold the credit with itself. If it intends to distribute CENVAT Credit, then as per the conditions, it has to register itself and follow the rest of conditions like pro rata distribution on the basis of prediction as well as no distribution to the unit which is wholly providing exempted service. This being the dictate of the rule, it can be said that there is no provision under the CENVAT Credit Rules for mandatory registration for IST. Moreover, there is no restriction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cause issue to it. Matter was adjudicated and duty demand against such inadmissible credit of ₹ 24,63,410/-, was confirmed against the appellant along with interest and equivalent penalty amount. After unsuccessfully challenging the same before the Commissioner (Appeals), appellant is before this Tribunal. 3. In the memo of appeal and during course of hearing of the appeal Learned Counsel for appellant Mr. Sachin Chitnis submitted that the demand is not sustainable as even after making such distribution through IST also, there would not be any change or variation in the credit availed by the appellant and no benefit can be derived by the respondent department. In such a revenue neutrality situation when availment of CENVAT Credit w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... while in 2012 with two conditions and three explanations. Therefore, from a plain reading of Rule 7, it is very much clear that the service distributor i.e. the main unit may distribute CENVAT Credit or hold the credit with itself. If it intends to distribute CENVAT Credit, then as per the conditions, it has to register itself and follow the rest of conditions like pro rata distribution on the basis of prediction as well as no distribution to the unit which is wholly providing exempted service. This being the dictate of the rule, it can be said that there is no provision under the CENVAT Credit Rules for mandatory registration for IST. Moreover, there is no restriction in the rule that the Central unit cannot avail the whole credit accruin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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