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TMI Blog2014 (10) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... te service tax registration. With effect from 7-6-2005, the concept of 'input service distributor' (ISD) was introduced by amendments for Service Tax Rules, 1994 and Cenvat Credit Rules, 2004. Under this scheme when the head office of a company providing taxable service is located at a particular place and taxable services are provided by branches located at different places, the head office could avail the Cenvat credit on the basis of invoices issued in its name and, thereafter, distribute the credit to various branches, by issuing ISD invoices. As per the Rules framed in this regard, an input service distributor was required to obtain registration ISD. However, in this case, during the period from January 2008 to March 2009, the appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se the Appellant did not obtain service tax registration specifically as input service distributor, the Cenvat credit availed by them for distribution to branches cannot be denied and that in view of this, the impugned order upholding the Cenvat credit and penalty is not sustainable. 4. Shri Sanjay Jain, ld. Departmental Representative, defended the impugned order by reiterating the findings of the Commissioner (Appeals) and cited the judgments of the Tribunal in the cases of Khaitan Electricals v. C.C.E., Kolkata-VI reported in 2011 (21) S.T.R. 184 (Tri.-Kolkata), Hindustan Coca Cola Beverages Pvt. Ltd. v. C.C.E., Meerut-II reported in 2011 (266) E.L.T. 347 (Tri.-Del.) = 2011 (22) S.T.R. 473 (Tri.) and Acro Paints Ltd. v. C.C.E., Jai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al services, were registered as provider of banking service since 2004, they should be treated as registered as ISD also, as they were for all practical purposes, functioning as input service distributor and the availment of service tax credit and its distribution to various branches by issue of invoices were being reflected in the ST-3 returns being filed by them, which is what a registered Input Service Distributor would have done. I have gone through the judgments cited by the ld. D.R. but none of them are applicable to the facts of this case. I, therefore, hold that the Appellant could take the Cenvat credit and distribute the same by issuing invoices to their branches. The impugned order is, therefore, not sustainable. The same is set ..... X X X X Extracts X X X X X X X X Extracts X X X X
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