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TMI Blog2013 (1) TMI 142X X X X Extracts X X X X X X X X Extracts X X X X ..... re the equipments are used belong to BSNL and not to any other party and it is also used for completion of services originating from Salem 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, we are of the view that the impugned credit should not be denied on account of procedural defects of minor nature as pointed out by the Revenue. Therefore, we hold that the impugned order is not maintainable. In favour of assessee BSNL may please note that the procedure laid down under the Rules are intended to be followed and cannot be circumvented by quoting different decisions of the Tribunal. There should be an earnest attempt on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DGM (Projects) at Salem, from manufacturers. These capital goods were installed in some of the SSAs within his jurisdiction and another SSA (Salem) within his jurisdiction took CENVAT credit thereon. The question arises as to whether the Salem SSA could take the credit on capital goods installed elsewhere within the jurisdiction of the DGM (Projects), Salem. It has been pointed out by the learned counsel that, in respect of capital goods procured by the DGM (Projects), Salem, CENVAT credit has been taken only by the Salem SSA and that the chances of other SSAs under the DGM (Projects), Salem taking credit on the same goods were ruled out by ensuring that the duty-paying documents were supplied by the DGM only to the Salem SSA. The SDR fear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stalled in any other SSA for transmitting their calls (as opposed to originating) would be entitled to take credit of duty paid on that equipment. As far as the impugned equipment is concerned, the noticees' Coimbatore and Trichy offices have issued certificates of non-availment of credit of duty paid on these capital goods. Therefore, it appears that other SSAs have not taken credit on these goods. As regards the latter question, since the goods are installed in the other SSAs and cenvatted at SSA Salem, the point of duty liability would arise only if credit is taken where it is installed in that SSA and if it is removed as such from there. At the moment such a possibility is not in existence. " 3. Thus it is established that credit has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Salem many times terminate in other concerned SSAs and the calls emanating from other SSAs terminate in Salem and therefore it cannot be said that these equipments are installed in places which have no nexus with the taxable service provided by SSA Salem. 5. Opposing the prayer of the appellant, the learned AR for Revenue submits that the equipments have to be used by the registered entity which is paying service tax and when it is used elsewhere it is not possible to conduct any verification about use of equipment and the correctness of the credit taken. It is his argument that if they wanted to avail CENVAT credit at one place only the CENVAT Credit Rules provided for registration as "input service distributor" as defined under Rule 2( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellants. Since MODVAT credit is a substantial benefit, we are of the view that the impugned credit should not be denied on account of procedural defects of minor nature as pointed out by the Revenue. Therefore, we hold that the impugned order is not maintainable. So we set aside the order and allow the appeal. 7. Before finally concluding the order, we would like to make an observation that M/s. BSNL comes up before this Tribunal on various issues of procedural infractions on a regular basis and have a tendency to evolve new procedures constructed from various decisions of the Tribunal which are given basically as a matter of leniency and not intended for setting up new procedures. BSNL may please note that the procedure laid down ..... X X X X Extracts X X X X X X X X Extracts X X X X
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