Monday, June 11, 2012

RULE 7 OF CENVAT CREDIT RULES, 2004: Manner of Distribution of Credit by input service distributors.


Assessee had only one unit. The Department had denied to assessee to avail CENVAT credit of Service Tax paid on input services on the ground that invoices were in the name of Head Office which was not registered as input service distributors. The assesse submits that he has only one unit and he is relied upon the case of Durferrit Asea (P.) Ltd. V. CCE. The Tribunal allowing the appeal in favour of assessee by quoting of above case. Relevant extracts of the aboe order is in para 5 is as under:

“It is also to be noted that the provisions of Rule 7 can be brought into play if the appellant wishes to get registered himself as input service credit distributor. If the appellant is not inclined to do so and if he does not have more than one manufacturing unit, then there is no conclusion for him to work under rule 7”.

National Plastic Industries Ltd. V. Commissioner of Central Excise, Vapi – CESTAT AHMEDABAD BENCH.

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