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TMI Blog2019 (5) TMI 128X X X X Extracts X X X X X X X X Extracts X X X X ..... lankarai, which was registered with the Customs Department and thereafter got transferred under the administrative control of Central Excise Department till their exit from the EOU scheme on 31.3.2011 after due process of law. Apart from the above units, the appellant is also registered as a dealer at Ponneri Taluk. The 100% EOU and DTA unit related documents and accounts are managed by only one office with common infrastructure and staff. This office is located at Neelankarai. A combined balance sheet is maintained for all the three units viz. EOU, DTA Unit and dealer. On scrutiny of documents, it was observed that the appellant had availed irregular credit without proper documents and also had availed credit in respect of invoices issued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issioner of Central Excise - 2019 (2) TMI 1250 CESTAT Chennai. 2.1 For the balance amount of Rs. 3,74,77,389/- for the period January 2010 to August 2011, the credit has been disallowed on three grounds. Firstly, that the appellant who is a manufacturing unit has availed credit on invoices issued in the name and addresses of Head Office / ISD registered unit. He submitted that the both units are in the same premises and the manufacturing unit which is the appellant herein had availed the credit on the invoices which were issued in the name and address of the Head Office / ISD registered unit. This was only a procedural error and the department does not dispute the availment of input services or the payment of service tax with regard to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot be denied. The said decision has been accepted by the Board as per para 2 of Circular No. 1063/2/2018-CX dated 16.2.2018. He also placed reliance on the decision of WABCO India Ltd. Vs. Commissioner of Central Excise - 2018 (5) TMI 777 - CESTAT Chennai. That in the present case, there is no allegation that the Head Office was not registered as an ISD. Further allegation is that certain services were not endorsed in the ISD registration. According to department, the appellant though had availed certain input services had not renewed or got endorsement in their ISD registration certificate with regard to certain services. He argued that credit cannot be denied even on invoices received prior to registration and therefore the disallowance o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssue is not contested on merits. He submitted that the appellant could not furnish the documents to the adjudicating authority and has reversed the credit even prior to issuance of the show cause notice. He has relied upon the decisions in Kotsons Pvt. Ltd. (supra) to argue that the penalty is unwarranted. Taking note of the fact that the appellant has reversed the credit more than three years before issuance of the show cause notice, we are of the considered opinion that the penalty imposed is unjustified and requires to be set aside which we hereby do. 5.1 For the period from January 2010 to August 2011, credit has been disallowed for three reasons. Firstly, that the manufacturing unit has availed credit on the invoices issued on ISD (n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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