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TMI Blog2023 (3) TMI 640X X X X Extracts X X X X X X X X Extracts X X X X ..... Appeal No.282 of 2011 - FINAL ORDER NO. 75099/2023 - Dated:- 13-3-2023 - SHRI ASHOK JINDAL, MEMBER (JUDICIAL) AND SHRI RAJEEV TANDON, MEMBER(TECHNICAL) Shri J. Chattpadhyay, Authorized Representative for the Appellant (s) NONE for the Respondent (s) ORDER Revenue is in Appeal against the impugned order alleging that the Respondent was not entitled to take CENVAT Credit of the input services in contravention of Rule 4A(2) of Service Tax Rules, 1994 read with Rue 9 (1) of the CENVAT Credit Rules, 2004. 2. The facts of the case are that the Respondent is a banking company and providing services under the category of Banking and Financial Services . It was alleged that during the period April 2005 to March 2008, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee without conforming to statutory provisions has resulted in irregular availment and utilization of CENVAT credit to the tune of Rs.7,75,01,418/- covering the Fys. 2005-06, 2006-07 and 2007-08 respectively. In this context, in the commercial field, it is seen that a manufacture or service provider may have head-office/regional office at different places. The service may be received at head office/regional office, but ultimately these will be indirectly used for manufacture or providing output service. Provision has been made to avail CENVAT credit of services received and paid for at head office, regional office. Such head office/regional office can be registered with Central Excise as Input Service Distributor. Now as per Rule 2(m) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r that the distribution should be in a specified ratio. If no distribution is necessary there should not be any need of Input service Distribution . The assessee has contended in their reply dated 17.05.2010 at para 2.1.6 that the Bank assesses the service-tax liability by collecting the details of the output services performed by the branches of the Bank. It also collects details of the input Services. The Zonal offices of the Bank collect these details form the branches functioning under their respective jurisdiction. All the details are then consolidated for the Bank as a whole and tax is paid after utilizing the CENVAT Credit. I also observe, that vide letter C.No.V(5)Misc/R/2/G-1/D- 1/ST/Audit/2009/2074 dated 31.07.2009 issued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndent, Service-Tax, Kolkata, under whose jurisdiction the assessee falls, two things are Correctly established:- I. The contention in the DSCN that the assessee had taken CENVAT on the basis of internal statements called D-2 furnished by their different Zonal offices on above basis based on estimation, loses both credibility and significance and therefore untenable. II. There is no need to distribute input-service credit and therefore there cannot be any requirement to take registration as Input Service Distributor . Further the Bank is nationalized bank and a Government of India undertaking and therefore there cannot be any malafide intention to evade duty. Moreover, they are registered with the Service Tax department and are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on-levy or not paid, short-levied or short-paid and/or erroneous refund of service-tax, it is a case of wrong availment of credit of tax paid by the assessee on input-services received by the assessee. I have already discussed above, that the activities of the assessee are not hit by any of the clauses mentioned at (a) to (e) supra and therefore, imposition of penlaty under section 78 of the Finance Act, 1994 is not warranted. On the other hand from the facts and circumstances of the case under consideration, there are cogent reasons in favour of the assessee calling for invocation of the provisions of Section 80 of the Finance Act, 1994. FINDINGS As the DSCN is devoid of any merits, I do not think it would be prudent to proce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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