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TMI Blog2021 (9) TMI 1198X X X X Extracts X X X X X X X X Extracts X X X X ..... that since the common input service is used for both the units, the Koshamba Unit is not entitle for Cenvat Credit in respect of portion of the service attributed to Jambushar Unit. Accordingly, the proportionate credit was denied, therefore, the present appeal filed by the appellant. 2. Shri. Mehul Jiwani, learned Chartered Accountant appearing on behalf of the appellant submits that the credit was denied invoking rule 7(d) of Cenvat Credit Rules, 2004. He submits that this issue has been settled in various judgments wherein, it was interpreted that till 2016 amendment it was the option of the assessee either to avail entire credit in one unit or to distribute in their different units therefore, taking credit in one unit is not illegal o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . In this regard, I have gone through the judgments cited by the appellant. The judgments and its relevant orders are reproduced below. In the case of Oerlikon Balzers Coating India Pvt Ltd (supra) The Hon'ble Bombay High Court interpreting rule 7 (d) passed the following order:- "8. It would be appropriate that we reproduce Rule 7 as existing prior to 2012 and post 2012 which is as under :- Rule 7 as Existing Prior to 2012 :- RULE 7. Manner of distribution of credit by input service distributor - The input service distributor may distribute the Cenvat credit in respect of the service tax paid on the input service to its manufacturing units or units providing output service, subject to the following condition, namely : (a) The cred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tribute input services tax available to it amongst its other manufacturing units which are providing output services. This is evident from the use of word "may distribute the Cenvat credit" is found in Rule 7 both prior and also post 2012. Thus, from the reading of the Rules, the option was available to the assessee whether to distribute the Cenvat credit or not. In fact, our attention is invited to Rule 7 of the Cenvat Credit Rules, 2004 as substituted w.e.f. 1-4-2016 which has made it mandatory for distribution of input services to the various units providing output services. This is evidence by the use of words "shall distribute the Cenvat credit" in the substituted Rule 7 as Cenvat Credit Rules 2004 w.e.f. 1-4-2016. Therefore, on plain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of Gloster Cables Ltd- 2018 (363) ELT 1197 (Tri.HYD). Considering the same issue Tribunal passed the following order:- "6. I find that Rule 7 of CENVAT Credit Rules as it existed during the relevant period reads as follows : "Rule 7. Manner of distribution of credit by input service distributor. - The input service distributor may distribute the CENVAT credit in respect of the service tax paid on the input service to its manufacturing units or units 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 used in a unit exclusively e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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