2018 (10) TMI 835 - AT - Service Tax

CENVAT Credit - duty paying invoices - registration of premises - Held that - It is an admitted fact on record that the appellant is a Company, duly incorporated under the Companies Act, 1956 and operates its business activities through various premises located in different parts of the country. There is no specific allegations being made by the department regarding non-payment of service tax, non-receipt of input service by the appellant. Since the address of the Chennai office was subsequently incorporated in the centralized registration certificate, the requirements of Cenvat statute, more particularly Rule 9 of the rules, have been duly complied with for the purpose of availment of the Cenvat benefit. Appeal allowed - decided in favor of appellant.

Summary

Issues:
1. Availment of Cenvat Credit on service tax paid on taxable services provided at a non-registered office.
2. Compliance with Cenvat Credit Rules for availing the benefit.
3. Upholding of adjudged demand confirmed on the appellant.

Analysis:

Issue 1: Availment of Cenvat Credit on service tax paid on taxable services provided at a non-registered office
The appellant, engaged in providing taxable services, faced objections from the department for availing Cenvat Credit on service tax paid on services provided at an office not specified in the registration certificate. The invoices were issued in the name of the appellant's Bombay office, which was registered, whereas the services were provided at the Chennai office. The appellant later obtained centralized registration incorporating the Chennai office. The department initiated show-cause proceedings seeking recovery of irregularly availed Cenvat Credit. The adjudication order disallowed the credit amount and imposed penalties. The Commissioner (Appeals) upheld the demand. However, the Tribunal found no specific allegations regarding non-payment of service tax or non-receipt of input services. The incorporation of the Chennai office in the centralized registration certificate was deemed as compliance with Cenvat rules for availing the benefit, leading to the appeal being allowed in favor of the appellant.

Issue 2: Compliance with Cenvat Credit Rules for availing the benefit
The Tribunal noted that the appellant, a Company operating through various premises across the country, complied with the requirements of Cenvat statute, particularly Rule 9, by subsequently incorporating the Chennai office in the centralized registration certificate. This compliance was crucial for the purpose of availing the Cenvat benefit. The absence of specific allegations regarding non-compliance with service tax payment or input service receipt further supported the Tribunal's decision to set aside the adjudged demands against the appellant.

Issue 3: Upholding of adjudged demand confirmed on the appellant
After considering submissions from both sides, the Tribunal found no merit in the impugned order. The lack of specific allegations, coupled with the compliance with Cenvat rules by incorporating the Chennai office in the registration certificate, led to the appeal being allowed in favor of the appellant. The Tribunal set aside the impugned order and confirmed that the adjudged demands could not be upheld against the appellant, ultimately ruling in favor of the appellant in this case.

This detailed analysis of the judgment highlights the key issues, arguments presented, and the Tribunal's reasoning leading to the final decision in favor of the appellant.