Principal manufacturer allowed to distribute cenvat of service tax to Contract Manufacturing Unit

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.

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