2018 (2) TMI 474 - AT - Central Excise

CENVAT credit - service tax paid and distributed by the Head Office as ISD - Held that - there is no dispute as to the fact that the cenvat credit has been availed based upon the invoices issued by the Head office of the appellant as an ISD - similar issue has been decided by this Bench in the case of Styrolution Abs India Pvt. Ltd. Vs CCE Vadodara 2018 (1) TMI 299 - CESTAT AHMEDABAD , wherein it was held that cenvat credit should be allowed to the manufacturing unit - appeal allowed - decided in favor of appellant.

Summary

Issues: Denial of cenvat credit on service tax paid and distributed by Head Office as Input Service Distributor (ISD).

The judgment by the Appellate Tribunal CESTAT AHMEDABAD addressed four appeals against the denial of cenvat credit to the appellant for service tax paid and distributed by the Head Office as ISD. Despite the absence of representation from the appellants, the issue was considered due to its narrow scope. The core issue revolved around the availing of cenvat credit by the appellants based on invoices issued by the Head Office as an ISD for renting immovable property not used in manufacturing activities. The Revenue contended that such credit was impermissible. However, the Tribunal noted that similar issues had been previously decided in favor of allowing cenvat credit to the manufacturing unit. Citing a precedent case, the Tribunal held that the impugned orders should be set aside, allowing the appeals and granting cenvat credit to the appellant based on the ISD invoices. The judgment emphasized consistency with previous decisions and upheld the appellant's right to claim cenvat credit in this context.