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TMI Blog2019 (5) TMI 252X X X X Extracts X X X X X X X X Extracts X X X X ..... al goods. 2.1 During the course of verification of records by the audit group, it was noticed that the appellants availed input service credit provided by the Andhra Bank to their A/c No. xxxxxxxxxxxxxxx belonging to M/s. Vamshadhara Paper Mills, Srikakulam unit and not to the Gummidipoondi unit. It appeared that the credit of service tax for the services provided by the bank and used by the appellant ought to have been distributed to the appellant under Rule 7 of the CENVAT Credit Rules, 2004 by the Srikakulam unit. 2.2 A Show Cause Notice was issued proposing to disallow the credit of Rs. 9,42,035/- for the period from August 2011 to April 2014 and for recovery of the same along with interest and for imposing penalties. After due proc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iled was objected to by them stating that the Account number at Chennai does not belong to the appellant and that it shows the address of Srikakulam unit. They asked the appellant to expunge the credit and to obtain ISD Registration at their Srikakulam unit and that the credit could be taken later. Even though the appellant got a certificate from the Andhra Bank at Chennai indicating that the said account belongs to the appellant at Chennai, the audit party forced the appellant to expunge the credit saying that the credit will be disallowed if they do not adhere to the norms. The appellant therefore expunged the credit on the belief that there shall be no damage to their credit. They took ISD Registration at their Srikakulam unit and availe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is situated in Chennai, can only avail the credit of service tax for the services by the Chennai Branch. As the address of the account shows the address of the appellant's Srikakulam Branch, the credit is ineligible. 5. Heard both sides 6.1 The issue is with regard to the disallowance of credit alleging that the bank account maintained by the appellant at Chennai shows the address of their Srikakulam unit. The appellant's registered office is at Srikakulam and the PAN is allotted to this Srikakulam address. Thus, as per the KYC norms, the very same address is reflected in all their bank accounts. This is very much clear from the certificate issued to them by Andhra Bank, Chennai, which reads as under : "As per KYC norms stipulated by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the technical difficulty to open an account in their address since the PAN registration is in the address of the Srikakulam unit and when the audit has taken note of this in 2014, the Show Cause Notice issued alleging suppression of facts with intention to evade payment of duty is without any factual basis. The present case does not attract any of the ingredients of Section 11AC of the Central Excise Act, 1944. The appeal therefore succeeds on limitation as well. 8. From the foregoing, I hold that the demand, interest or penalties imposed are required to be set aside, which I hereby do. The impugned order is set aside. 9. The appeal is allowed with consequential reliefs, if any, as per law. (Order pronounced in the open court on 04. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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