2016 (4) TMI 495 - AT - Service Tax

Admissibility of Cenvat credit - wrongly taken by the Head office of the appellant with respect to the services availed by the branch offices situated all over the country under Appellant s head quarters - Held that - the facts involved in the present case are similar to the facts before CESTAT Ahmedabad in the case of Market Creators Ltd. vs. Commissioner of C.Ex. & S.T., Vadodara 2014 (7) TMI 704 - CESTAT AHMEDABAD . By following the same, the appellant is not admissible for Cenvat credit. - Decided against the appellant

Summary

Issues Involved:
Taking of Cenvat Credit without proper registration as Input Service Distributor.

Analysis:

Issue: Taking of Cenvat Credit without proper registration as Input Service Distributor

The Appellant filed an appeal against an Order-in-Appeal dated 16.09.2011. The issue revolved around the Appellant taking Cenvat Credit for services utilized at branch offices under the headquarters without the headquarters being registered as an input service distributor. The Revenue contended that since the branch offices and even the headquarters were not registered with the service tax authority, the credit availed by the Appellant was inadmissible. The Revenue relied on the case law of Market Creators Ltd. vs. Commissioner of C.Ex. & S.T., Vadodara [2014(36) S.T.R.386(Tri.-Ahmd.)].

Upon hearing the arguments and examining the case records, it was noted that the Appellant had indeed availed Cenvat Credit for services at branch offices without proper registration as an Input Service Distributor. Reference was made to the case law cited by the Revenue, where it was emphasized that the provisions requiring registration as an Input Service Distributor were clear. The case law highlighted the necessity for proper registration and issuance of invoices for distributing service tax credit. The judgment underscored that special provisions, such as those governing input service distributors, must prevail over general provisions. It was emphasized that the Appellant could not take credit from a premises not registered as an Input Service Distributor under the service tax provisions.

In light of the similarities with the case law cited, the Appellant's appeal was dismissed. The judgment reiterated the importance of adhering to the specific provisions regarding registration and conduct of input service distributors. The Appellant's argument that the extended period was not applicable did not hold as there was no disclosure to the department regarding the improper availing of Cenvat credit. The decision was in line with the precedent set by CESTAT Ahmedabad, leading to the dismissal of the Appellant's appeal.

This comprehensive analysis delves into the core issue of taking Cenvat Credit without proper registration as an Input Service Distributor, outlining the legal framework, case law references, and the ultimate dismissal of the appeal based on established principles and precedents.