TMI Blog2023 (3) TMI 634X X X X Extracts X X X X X X X X Extracts X X X X ..... credit. The category of service is not disputed. During the relevant period the definition of input services had a wide ambit as it included the words activity relating to business . For this reason the view taken by the Commissioner (Appeals) that the credit on the impugned services is eligible is legal and proper. Credit has been distributed only to single unit by the Head Office - HELD THAT:- Even if the services are availed at the Head Office the same is available for credit since it is not necessary that the input services should be consumed in the factory itself. Another ground raised by the Department is that the credit has been distributed to one unit only. Prior to the amendment in 2012, Rule 7 did not provide any manner of d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ORDER The above appeal is filed by the Department aggrieved by the order passed by the Commissioner (Appeals) dated 14.12.2012. 2. Brief facts are that M/s. Parryware Roca Pvt. Ltd., the respondents herein are engaged in manufacture of Ceramic articles. They have availed CENVAT Credit of service tax paid by their Head Office situated at Chennai and distributed the same in the capacity of input service distributor. Three Show Cause Notices were issued to them proposing to deny the credit for November 2007 to September 2008 for the following reasons. (i) The input services has been distributed only to Parryware situated at Ranipet, though there were other three manufacturing units at Perundurai in Tamilnadu, Alwar in Rajasthan and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ties relating to business . However, it was held that the appellant is not eligible to avail credit in relation to trading activity and therefore ordered that the credit proportionate to trading activity has to be calculated and reversed by the respondent. The Department has filed the present appeal against such order. 5. The learned AR Shri S. Balakumar appeared and argued for the Department. He reiterated the grounds of appeal. It is submitted by him that the Commissioner (Appeals) has failed to consider and appreciate that trading cannot be considered as a service or a manufacturing activity. The Commissioner (Appeals) held that as the respondent is not maintaining separate accounts, the credit on common input services proportionate t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... included the words activity relating to business and therefore all the services would be covered within the definition of input services. The Commissioner (Appeals) has rightly allowed credit on business auxiliary services. The main ground raised in the appeal is that the input services were not received and used by the manufacturing unit at Ranipet and therefore the distribution of credit by Head Office is not in accordance with law. The learned counsel submitted that it is not necessary to avail the services within the factory itself. 8. The other allegation is that the Head Office of the respondent company has distributed the entire input service credit to one unit at Ranipet which is the manufacturing unit. The learned counsel adve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appeal is that the Head Office of the respondent has distributed the entire input service credit to the manufacturing unit at Ranipet. Even if the services are availed at the Head Office the same is available for credit since it is not necessary that the input services should be consumed in the factory itself. Another ground raised by the Department is that the credit has been distributed to one unit only. Prior to the amendment in 2012, Rule 7 did not provide any manner of distribution of input service credit. An assessee had an option to decide the distribution of the credit. The decision relied upon by the learned counsel for the respondent has analyzed the very same issue in the case of Godrej Consumer Products Ltd. (supra), the Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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