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TMI Blog2016 (6) TMI 313X X X X Extracts X X X X X X X X Extracts X X X X ..... stead of mandatory for its application. The non-registration as ISD should not deprive the appellant of substantial benefit of credit. Moreover, it is found that the appellant has taken the ISD Registration w.e.f. 18.3.2013, and since this is only a procedural lapse in law, credit cannot be denied. The other aspect with regard to trading of goods should be looked into by the adjudicating authority and for that purpose, I remand the matter back to the adjudicating authority to have a relook into the whole issue. In the event, if it is found that appellant has availed the credit which are used for trading of goods, they shall reverse the same immediately. Since the credit is held to be eligible, the consequential penalty is also set aside. - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erest + Penalty ₹ 1000 u/r15(1) of CCR 2004 E/40127/ 2015 25/2013-CE dt. 27.5.2013 13/2014 (M-III) Dt. 10.11.2014 Oct, 2011 to Dec, 2011 Duty: 4,33,571 + Interest = Penalty ₹ 2000/- u/r15(1) of CCR 2004 E/40126/ 2015 24/2013-CE dt. 27.5.2013 12/2014 (M-III) Dt. 10.11.2014 Jan 2012 To March 2012 Duty : 3,66,607/- + Interest + Penalty : ₹ 2000/- u/r15(1) of CCR 2004 The disallowance of credit by the lower authorities was on the ground that the invoices addressed to appellant's head office at Chennai based on which the appellant availed credit, was not valid document and also the services relatable to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant availed credit of service tax paid on input services addressed to their Head office. They are having two units (i) at Ranipet (ii) at Ahmedabad. On any invoice addressed to H.O., there is pretty chances of availing of credit by the other unit. The Head office should have got registered as Input Service Distributor (ISD) and distributed the credit accordingly. They can very much distribute the credit. The invoices also relate to Banking charges. The main allegation is that the invoices are addressed to H.O. He submits that when the appellants are also engaged in trading activities, they could have very well refrained from taking credit on trading activities. Though they have quantified their credit taken on trading activities, till ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant was entitled to the credit for no finding on the genuinity of the credit availed and such credit allocated by the ISD. Similarly, there was no disintegration between the appellant and its head office. There is also no finding that the credit which the appellant availed is not attributable to its manufacturing activity. Therefore, the fact itself makes clear that there was an inextricable link between the service availed and the activity for which such service was availed. There is also nexus between the head office and the appellant. So also the credit is remaining unquestioned as to the genuinity thereof. 8. When substantial law has granted relief, it is only procedural law that has dragged the appellant to the litigation. As a r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an angry interrogation at the law reformer. 11. The processual law so dominates in certain systems as to overpower substantive rights and substantial justice. The humanist rule that procedure should be the handmaid, not the mistress, of legal justice compels consideration of vesting a residuary power in Judges to act ex debito justitiae where the tragic sequel otherwise would be wholly inequitable. Justice is the goal of jurisprudence, processual, as much as substantive. No person has a vested right in any course of procedure. He has only the right of prosecution or defence in the manner for the time being by or for the court in which the case is pending, and if, by an Act of Parliament the mode of procedure is altered, he has no othe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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