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2018 (10) TMI 762 - AT - Service TaxCENVAT Credit - services received by BSNL (WTR) - whether the appellant is not entitled to take cenvat credit on the services received by BSNL(WTR) on the ground of having no interconnectivity between the appellant and the said unit & various regional service providing units of BSNL? Held that - The said issue is no more res integra and decided in favor of appellant in the case of M/S BSNL, SALEM VERSUS CCE, SALEM 2013 (1) TMI 142 - CESTAT CHENNAI , where it was held that Basically the issue involved is one of procedures and not a case of mis-utilisation of any ineligible credit. Since MODVAT credit is a substantial benefit, the impugned credit should not be denied on account of procedural defects of minor nature as pointed out by the Revenue. Appeal allowed - decided in favor of appellant.
Issues:
1. Recall of order due to non-receipt of notice 2. Appeal against order dated 04.06.2014 regarding service tax credit on interconnect usage charges 3. Entitlement to cenvat credit on services received from BSNL Issue 1: Recall of order due to non-receipt of notice The judgment addresses a Miscellaneous Application seeking the recalling of an Order dated 28.02.2018 due to the appellant's claim of not receiving any notice by the said date. The Tribunal found the submission to be correct based on the record, and the Department did not object to this claim. Consequently, the Appeal was allowed to be restored to its original number, and the application for recall was granted. Issue 2: Appeal against order dated 04.06.2014 regarding service tax credit on interconnect usage charges The appeal pertains to a case where the appellants, registered with the Service Tax Department, availed cenvat credit under Cenvat Credit Rules, 2004, for service tax paid on various input services, including Interconnect Usage Charges (IUC). The Department contended that interconnection of telephone networks became subject to service tax from 01.06.2007, leading to a demand confirmed via a Show Cause Notice dated 27.09.2012. The appellant argued that the issue had already been decided in their favor, citing a decision by the Chandigarh Tribunal. After considering both parties' arguments, the Tribunal concluded that the issue was identical to previous cases and allowed the appeal based on precedent, emphasizing procedural compliance over minor defects. Issue 3: Entitlement to cenvat credit on services received from BSNL The core issue examined was whether the appellant was entitled to cenvat credit for services received from BSNL without direct interconnectivity. The Tribunal referenced a decision by the Chandigarh Tribunal, which highlighted the importance of procedural adherence and the lack of misuse of credit. The Tribunal agreed with the appellant's arguments, emphasizing that the premises where services were provided belonged to BSNL and were used for completing services originating from the same location. Consequently, the Tribunal allowed the appeal, following the precedent set by previous judgments and emphasizing the substantial benefit of cenvat credit. In conclusion, the judgment addressed the recall of an order, the dispute over service tax credit on interconnect usage charges, and the entitlement to cenvat credit for services received from BSNL. The decision was based on legal precedents, procedural compliance, and the substantial benefits of cenvat credit, ultimately allowing the appeal in favor of the appellant.
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