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2018 (3) TMI 839 - AT - Central ExciseCENVAT credit - credit is deniable and the invoices issued by their head office is incorrect as the invoices are issued by the head office who has no input service distributor (ISD) registration certificate - Held that - identical issue decided in the case of M/s. Doshion Limited Versus Commissioner of Central Excise, Ahmedabad 2012 (10) TMI 952 - CESTAT AHMEDABAD , where it was held that In the absence of any legal requirement to avail credit based on the services received during the relevant time and the procedural irregularity has to be ignored and the demand confirmed has to be set-aside on this ground - appeal allowed - decided in favor of appellant.
Issues: Denial of CENVAT credit to the appellants for specific periods due to invoices issued by the head office without ISD registration certificate.
In this judgment, the Appellate Tribunal CESTAT Hyderabad addressed the issue of denial of CENVAT credit to the appellants for the periods March 2011 to December 2011 and January 2012 to July 2012. The lower authorities alleged that the CENVAT credit was not valid as the head office had issued invoices without having an Input Service Distributor (ISD) registration certificate. The appellant argued that a similar issue had been adjudicated by the Commissioner of Central Excise, Bangalore, in favor of the appellant for a different period. The Departmental Representative contended that CENVAT credit could not be claimed for invoices issued by the head office without ISD registration, citing the Tribunal's decision in the case of Mangalore Refinery & Petrochemicals. The Tribunal noted that the issue revolved around whether CENVAT credit could be availed on invoices from the head office without ISD registration, which had been settled in previous decisions such as Doshion Ltd. and Demosha Chemicals Pvt. Ltd. The Tribunal also referenced the High Court of Gujarat's rulings in the case of Doshion Ltd. to support its decision. Given that a similar issue involving the appellant's unit in Mangalore had been resolved in favor of the appellant and in light of the legal precedents, the Tribunal found the impugned orders unsustainable. Consequently, the Tribunal set aside the orders and allowed the appeals, concluding that the denial of CENVAT credit was not justified in this case.
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