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2015 (10) TMI 292 - AT - Service TaxDenial of CENVAT Credit - input service distributor (ISD) - Respondents are engaged in the manufacture of Conductors and availed credit of the input services on the strength of invoice which is issued in the name of head office and endorsed to the appellant s unit - Held that - Head Office of the appellant was holding Central Excise registration under Business Auxiliary Service since 2004. The appellant company has two units at Ghaziabad and Vapi. In the present case, the Head Office endorsed the invoice in the name of Vapi unit for availing CENVAT Credit - It is seen that as per Master Circular, of the appellant company has incorporated the additional service as Input Service Distributor (ISD) w.e.f. 21.11.2007 in the registration, which they are holding since 2004. Therefore, in the present case, it cannot be said that the Head Office was not registered with the Service Tax authorities. I find that the Tribunal in the appellant s own case, for the subsequent period in the case of CCE Vapi Vs Samita Conductors Ltd - 2012 (11) TMI 432 - CESTAT, AHMEDABAD rejected the appeal filed by the Revenue - Revenue has not made out a case that the appellant had availed CENVAT Credit which is within the restriction of the ISD registration and therefore, there is no reason to deny the CENVAT Credit - No reason to interfere the order of the Commissioner (Appeals) - Decided against Revenue.
Issues:
- Appeal against setting aside of Adjudication order based on CENVAT Credit availed using endorsed invoices of Head Office not registered as Input Service Distributor. - Applicability of previous Tribunal decisions in similar cases. - Interpretation of Master Circular regarding Input Service Distributor registration and credit distribution. - Validity of CENVAT Credit availed by the appellant based on Head Office endorsement. - Justification for rejecting Revenue's appeal and upholding Commissioner (Appeals) order. Analysis: 1. The appeal was filed by Revenue challenging the setting aside of the Adjudication order, which questioned the eligibility of the appellant to avail CENVAT Credit based on invoices endorsed by the Head Office not registered as an Input Service Distributor (ISD). The Revenue contended that the appellant's credit availed from April 2005 to September 2005 was invalid due to the lack of ISD registration by the Head Office, citing relevant case laws for support. 2. The Respondents argued that their Head Office, registered under Business Auxiliary Service since 2004, was eligible to endorse invoices for credit distribution. They highlighted the amendment in the registration certificate to include ISD after a specific Board circular. The Respondents relied on various decisions supporting their stance, emphasizing the Head Office's compliance with registration requirements. 3. Upon examination, it was found that the appellant's Head Office had Central Excise registration under Business Auxiliary Service since 2004. The Head Office endorsed invoices for the Vapi unit to avail CENVAT Credit. The Master Circular clarified the concept of an Input Service Distributor and the conditions for credit distribution. The Tribunal's decision in a similar case favored the appellant, emphasizing the registration status and credit validity. 4. The Tribunal noted that the appellant's Head Office had incorporated ISD service in its registration since 2007, aligning with the Master Circular requirements. Previous Tribunal decisions supported the appellant's position that credit availed before ISD registration by the Head Office should not be denied. The Revenue failed to establish any misuse of credit within ISD restrictions, leading to the rejection of their appeal and upholding of the Commissioner (Appeals) order. 5. In conclusion, the Tribunal found no grounds to interfere with the Commissioner (Appeals) decision, rejecting the Revenue's appeal and disposing of the cross objection. The judgment emphasized the importance of compliance with registration requirements and the validity of credit availed based on proper endorsement and distribution practices, as outlined in relevant regulations and precedents.
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