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TMI Blog2015 (1) TMI 1086X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellant-assessee. In the facts and circumstances, the invoices are found to be in the name of the assessee-company, issued to the branch offices. The payments are accounted at the head office which is registered as an ISD. The availment of credit and the distribution by the head office are legal and proper. Thus the appeal is allowed. The impugned order is set aside. The appellant will be entitled to consequential benefits in accordance with law. - Decided in favour of assessee. - Appeal No.E/88627/13-Mum - Final Order No. A/1481/2014-WZB/C-IV(SMB) - Dated:- 29-10-2014 - Anil Choudhary, J. For the Appellant : S Chandrasekhar, Dy Manager-Excise For the Respondent : Shri Ashutosh Nath, Assistant Commissioner (AR) JUDGEM ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vailed by them pertaining to the period 2007-08 and 2008-09 and intimated the same to the department vide letter dated 24.1.2012. Subsequently, the appellant had also paid interest of ₹ 4,48,586/- on 6.2.2012. Accordingly, it was proposed to disallow the inadmissible credit as alleged, amounting to ₹ 8,22,558/- along with interest and also as to why not penalty be imposed under Rule 15(2) of the Cenvat Credit Rules, read with Section 11 AC (1)(a) of the Central Excise Act, 1944. The show cause notice was adjudicated vide order-in-original dated 5.2.2013 confirming the proposed demand with interest and further equal amount of penalty was imposed under Rule 15(2) of the Cenvat Credit Rules read with Section 11AC of the Act. Being ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... registered as an ISD. Further, receipts and expenses of branch office of the appellant are accounted for in the books of the head office. Expenses incurred by the branch offices are regularly reimbursed by the head office which is an ISD and such expenses and service tax are accounted for in the books at head office and service tax paid on the same is accounted for by the head office in the returns regularly filed with the Revenue. In several cases, even the payment for the expenses for the services availed at the branch office are made by the head office. The corporate office has centralized registration for discharging the service tax obligations of its branch offices and accordingly it has rightly taken credit of the services received a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice provide by the branch office. Though the invoices for input services were in the name of branch office, the payment was actually made from the premises in which registration has been taken. Relying on the ruling of the Tribunal in the case of Stadmed Pvt. Ltd. [1998 (102) ELT 466], it was held that credit is allowable. The appellant also relies on the Tribunal's decision in the case of Zenith Fibres Ltd. vs. CCE, Vadodara-I reported in - 2013-TIOL-1107-CESTAT-AHM, wherein it has been held that in case of cenvat credit or input services received by the head office, availed by the assessee at the factory, credit was denied on the ground that the corporate office is not registered as ISD. It was held that the appellant had got only ..... X X X X Extracts X X X X X X X X Extracts X X X X
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