2015 (6) TMI 919 - AT - Service Tax

Denial of CENVAT Credit - Whether the appellant could have taken the credit of service tax either of the units belonging to them without considering whether the invoice was addressed to the Head Office or to the units - Held that - When the Service Tax Registration is common and both the units are located adjacent to each other, insisting that the service tax also should be segregated may not be relevant. The decision of the Hon ble High court of Karnataka relied upon by this Tribunal in the case of CCE & ST, Bangalore Vs. Biocon Ltd. 2014 (9) TMI 716-Karnataka High Court in my opinion applies to the present case also. - Decided in favour of assessee.

Summary

Issues:
1. Whether the appellant could have taken the credit of service tax for units belonging to them without considering the addressee of the invoice.
2. Whether the service tax should be segregated when units have a common Service Tax Registration.

Analysis:
1. The issue in Appeal Nos. E/21576 to 21577/2014 pertained to the appellant's eligibility to claim service tax credit for their units without regard to the addressee of the invoice. The Tribunal had previously ruled on a similar matter concerning units with a common Service Tax Registration. Despite arguments about separate Central Excise Registrations and a sister concern nearby, the Tribunal found these points irrelevant. Given the common Service Tax Registration and proximity of the units, segregating service tax was deemed unnecessary. Citing a precedent decision of the Hon'ble High Court of Karnataka, the Tribunal allowed the appeals, granting relief to the appellants.

2. The second issue addressed whether service tax needed segregation for units sharing a common Service Tax Registration. The Tribunal, relying on a previous decision and the common registration of the units, concluded that segregating service tax was unnecessary. The Tribunal dismissed arguments about separate Central Excise Registrations and the presence of a sister concern nearby, emphasizing the relevance of the common Service Tax Registration and proximity of the units. Following the precedent decision and arguments put forth by the learned counsel, the Tribunal allowed Appeals E/21576 to 21577/2014, providing consequential relief to the appellants.

In conclusion, the Tribunal's judgment favored the appellant in both issues, emphasizing the significance of a common Service Tax Registration and proximity of units in determining the eligibility for service tax credit and the necessity of segregating service tax amounts. The decision aligned with precedent rulings and established principles, providing relief to the appellants based on these considerations.