9911796707
TMI Blog2023 (1) TMI 542X X X X Extracts X X X X X X X X Extracts X X X X ..... s providing any taxable service and using one or more separate premises, which are assisting directly or indirectly in providing such taxable services and has centralized billing/accounting system, then the service tax registration for such separate premises can be obtained under the centralized service tax registration. This is irrespective of the fact that such other separate premises are providing any taxable service on their own or not. It is the case of the appellant that these Zonal Training Centre (ZTC), Zonal Audit Office (ZAO) and Zonal Office (ZO) are assisting the appellant in the provision of its taxable services and have centralized accounting/ billing system. Since generally training centre and audit office are considered a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he order dated 1.11.2021 by which the Commissioner (Appeals), Central Excise and Central Goods Service Tax, Jaipur rejected the appeal filed by the appellant. 2. The issue involved herein is whether the appellant can avail Cenvat Credit in respect of input services availed by its Zonal Training Centre (ZTC), Zonal Office (ZO) and Zonal Audit Office (ZAO) in terms of Rule 2(l) of Cenvat Credit Rules, 2004 and whether the services received by Zonal Training Centre, Zonal Office and Zonal Audit Office falls under the definition of input service as provided by Rule 2(l) ibid? 3. It is the case of the department that the appellant, who is engaged in providing banking and financial services , has wrongly availed the Cenvat credit of se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perations; that due to excessive workload, the appellant, instead of keeping these department in the same premises as that of the appellant, provided them three separate office premises for operational efficiency and better control and for that purpose had obtained centralized service tax registration and these three wings in issue, are assisting the appellant in its day to day operation; that the appellant is discharging its service tax liability on the total value of taxable services provided by all the premises covered under the centralized registration after utilizing the Cenvat credit of the input services received at these offices; that although these offices are not providing any taxable services on their own but they are assisting t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other circles and hence, the credit is not admissible. He cited decisions in support of invoking the extended period 6. I have heard learned Counsel for the appellant and learned Authorized Representative for the Revenue and perused the case records including the synopsis case laws cited by the respective sides. Admittedly the centralized registration has been obtained by the appellant in terms of Rule 4(2) of Service Tax Rules, 1994. The said rule provides that if a person is providing any taxable service and using one or more separate premises, which are assisting directly or indirectly in providing such taxable services and has centralized billing/accounting system, then the service tax registration for such separate premises can be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g Cenvat Credit by the appellant, as these offices are not providing any taxable output service. In my view only because these offices are situated separately is no ground to deny the Cenvat Credit to the appellant. These offices are integral part of the appellant and under the proper control and supervision of the appellant. They are not separate entity. For example Zonal Training Centre is engaged in providing training to the employee of the appellant, which is essential for the smooth and effective functioning of the appellant whereas, Zonal Audit Office is managing the internal audit function of the appellant. So far as Zonal Office is concerned, it is providing administrative assistance/ support to the appellant and its circle offices. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant would have been remained the same. As discussed hereinabove, the appellant has successfully established that these three zonal offices are integral part and parcel of the appellant only and the fact that they are located separately hardly makes any difference. Therefore, the appellant is justified in availing Cenvat Credit in respect of input services availed by its Zonal Training Centre, Zonal Office and Zonal Audit Office (ZAO) in terms of Rule 2(l) of Cenvat Credit Rules, 2004 and the services received by these zonal offices fall under the definition of input service as provided by Rule 2(l) ibid. Therefore, the demand raised in the show cause notice is not sustainable and once the demand has been set aside, there is no q ..... X X X X Extracts X X X X X X X X Extracts X X X X
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