2011 (12) TMI 367 - AT - Central Excise

Whether the appellant s factory can take CENVAT Credit of Service Tax paid when the invoices are in the name of Head Office - CENVAT Credit of Service Tax paid on input services has been denied on the ground that the invoices were in the name of Head Office and Head Office was not registered as input service distributor - Tribunal in the case of Durferrit Asea (P.) Ltd. v. CCE 2010 -TMI - 77024 - CESTAT, BANGALORE - Decided in favor of the assessee

Summary

Issues Involved:
1. Whether the appellant's factory can take CENVAT Credit of Service Tax paid when the invoices are in the name of Head Office.

Analysis:
The issue at hand in this case revolves around the eligibility of the appellant's factory to claim CENVAT Credit of Service Tax paid on input services, despite the invoices being in the name of the Head Office. The Tribunal, after considering the submissions and perusing the records, found that the appellant is entitled to avail the CENVAT Credit. The Tribunal referred to a previous case where a similar issue was addressed, emphasizing that the appellant's eligibility for the credit should not be hindered by the fact that the invoices were raised in the name of the Head Office. The Tribunal highlighted that the Commissioner's decision to deny the credit based on procedural grounds was not supported by the evidence or the show cause notice. Additionally, the Tribunal noted that the provisions of Rule 7 regarding input service credit distributor registration are only applicable if the appellant intends to register as such, which was not the case here as the appellant had only one manufacturing unit. The Tribunal also confirmed that there was no evidence of any other units of the appellant in the relevant jurisdiction, further supporting the appellant's claim for the credit.

In conclusion, the Tribunal held that the issue raised in this case is in line with the precedent decisions and agreed with the view that the appellant is eligible to take the CENVAT Credit of Service Tax paid on input services, even if the invoices were addressed to the Head Office. The Tribunal's decision underscores the importance of focusing on the substance of the claim rather than procedural technicalities, especially when the appellant's circumstances align with the relevant legal provisions and requirements.