TMI Blog2020 (12) TMI 416X X X X Extracts X X X X X X X X Extracts X X X X ..... lant. Shri C. Mallikarjun Reddy, Superintendent for the Respondent. ORDER 1. The only issue to be decided is whether the appellant is entitled to distribute the Cenvat Credit including Education Cess and SHE cess taken on the Research Development services received to their manufacturing units in terms of Rule 7 of Cenvat Credit Rules, 2004. 2. Show cause notice dated 23.03.2018 was issued by the Revenue and the same was adjudicated by the Principal Commissioner vide impugned order in original which is impugned by this appeal before us. 3. Heard Shri S. Thirumalai, Learned Advocate for the assessee appellant and Shri C. Mallikarjun Reddy, Learned DR for the Revenue. Admittedly, there is no dispute as regards the facts i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re is a direct corelation between the services used in the IPDO, which is their R D unit and the manufacture. Therefore, they are entitled to CENVAT Credit on such services. The question before us is whether the appellant is entitled to CENVAT Credit on the input services used in the IPDO or otherwise. The appellant had taken registration as Input Service Distributor and has distributed the credit taken in their IPDO to their units. . . . 8. We have considered the arguments on both sides and perused the records. Pharmaceutical industry is a specialised industry distinct from other industries. Not only is the manufacturer required to manufacture the correct drug but is also required to make it of the requisite quality and standards. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scale, R D units are set up as independent units for serving various manufacturing units of the manufacturer. In such a case, the services availed in the R D units have a direct nexus to the manufacture of the products in various units. If the assessee is registered as an input service distributor, the CENVAT Credit availed on the services used in the R D unit can be distributed to various manufacturing units. The appellant has just done that. 9. Our view in this regard is consistent with the view taken by the Tribunal Allahabad in the case of Jubiliant Life Sciences Ltd. (supra) and upheld by the Hon ble Apex Court. It is also consistent with the decision of this Bench in the case of Aurobindo Pharma Limited (2019-TIOL-3415- CESTAT HY ..... X X X X Extracts X X X X X X X X Extracts X X X X
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