2018 (9) TMI 1653 – CESTAT CHENNAI – TMI – CENVAT Credit – credit availed on the basis of the invoices issued by their corporate office at Kolkata and their sales branch Mumbai in the capacity as Input Service Distributor – reversal order on the ground that the appellant has not distributed the credit proportionately to all the units.
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Held that:- The said issue is decided in the case of COMMISSIONER OF CENTRAL EXCISE VERSUS DASHION LTD [2016 (2) TMI 183 – GUJARAT HIGH COURT], where it was held that There is nothing in the said Rules of 2005 or in the Rules of 2004 which would automatically and without any additional reasons dis-entitle an input service distributor from availing Cenvat credit unless and until such registration was app
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alore, Manali. Further, they have two units at Uttaranchal where flash lights / dry cell batteries are manufactured. All these units except the two units at Uttaranchal avail CENVAT credit on inputs, capital goods and input services. On verification of ER-I returns, it was observed that they have availed credit on the basis of the invoices issued by their corporate office at Kolkata and their sales branch Mumbai in the capacity as Input Service Distributor. It was noticed by the department that the ISD invoices did not distribute the credit proportionately to all the units and that the distribution was not in accordance with Rule 7 of CENVAT Credit Rules, 2004. Show cause notice was issued proposing to disallow the CENVAT credit and for rec
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ral Excise Vs. Ecof Industries Ltd. – 2011 (23) STR 33 (Kar.), the very same view has been taken by the High Court of Karnataka. 3. The ld. AR Shri A. Cletus supported the findings in the impugned order. 4. Heard both sides. 5. The demand has been confirmed on the ground that the appellant has not distributed the credit proportionately to all the units. The said issue is decided by the Hon ble High Court of Gujarat in the case of Dashion Ltd. (supra). As rightly pointed out by the ld. counsel for appellant, the said decision has been accepted by the department vide its circular dated 16.2.2018. This Tribunal in the case of Wabco India Ltd. Vs. Commissioner of Central Excise, vide Final Order No. 41449 to 41454 of 2018 dated 9.5.2018 has fol
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