Case Law Details
M.B. Industries Pvt. Limited Vs Commissioner of Central Goods And Service Tax & Central Excise (CESTAT Delhi)
CESTAT Delhi held that in terms of the provisions of Rule 2(m) and Rule 7 of the CENVAT Rules, before 01.04.2016, the Principal Manufacturer as an Input Service Distributor is facilitated to distribute cenvat credit in respect of service tax paid on the input services to its Contract Manufacturing Unit working on job work basis.
Facts-
The common issues involved in the instant appeals are whether input service credit distributed by M/s Parle Biscuits Pvt. Ltd., the principal manufacturer (PBPL in short) as an Input Service Distributor (ISD) to M/s M. B. Industries Pvt. Ltd., /M/s M. B. Foods Pvt. Ltd., (appellants in short) working on job work basis, known as “Contract Manufacturing Unit” (CMU), is deniable on the ground that CMU is not a manufacturing unit of PBPL and the credit could be distributed by ISD only to its own manufacturing units as per Rule 7 of CCR and whether extended period of limitation and penal provisions are invocable in the absence of any conscious or deliberate suppression of facts or mis-statement on the part of the appellants.
Conclusion-
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