9911796707
TMI Blog2023 (5) TMI 196X X X X Extracts X X X X X X X X Extracts X X X X ..... ts Parwanoo office, wherein it has been following centralized billing system. Since its registration, the appellant has been paying service tax and filing service tax returns from the said office including for the period 2008-2009. The Department had conducted audit of the appellant's filing of service tax returns and vide its audit report, objected to the taking of the Cenvat Credit of Rs. 56,95,997/- allegedly distributed by the appellant's Noida office during the aforesaid period on the ground that the said credit has been distributed without registering itself as "input service distributor." In the audit report, it was observed that the Noida office of the appellant has applied for registration as input service distributor on 16.04.2009 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al vide its final order No. 60648 of 2017 in Appeal No. ST/3976/2012 dated 11.04.2017 has allowed the appeal of the appellant. He further submitted that the Revenue has challenged the decision of this Tribunal before the Hon'ble High Court of Punjab and Haryana and the Hon'ble High Court vide its decision 12.11.2018 allowed the revenue to withdraw its appeal on monetary grounds as the amount involved in that appeal was less than Rs. 50.00 Lakhs. 9. On the other hand, the Ld. DR reiterated the findings of the impugned order. 10. After considering the submissions of both the parties and perusal of the material on records, we find that this Tribunal in the appellant's own case for the previous period has allowed the cenvat credit and the Rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sthan, has held that the availment based on invoices issued by input service distributor prior to registration under Service Tax (Registration of Special Category of Persons) Rules, 2005 is only procedural irregularity and hence the denial of credit is bad in law. The relevant findings of the Hon'ble Karnataka High Court are reproduced herein below:- "8. The dispute involved herein is no more res integra in view of the judgment of the Hon'ble High Court of Gujarat in the case Dashion Ltd., supra which has been accepted by the Department in terms of the Circular dated 16-2-2018. The relevant paragraphs of the judgment of Dashion Ltd., supra is quoted hereunder for ready reference : 7. The second objection of the Revenue as noted was wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntral Excise v. Dashion Ltd. in Tax Appeal No. 415 of 2013 & 662 of 2014 [2016-TIOL-111-HC-AHM-ST = 2016 (41) S.T.R. 884 (Guj.)] (b) Decision of the Hon'ble High Court of Rajasthan dated 8-2-2016 in the matter of Commissioner, Central Excise Commissionerate, Jaipur v. National Engineering Industries Ltd. - CEA No. 3/2016 [2016-TIOL-922-HC-RAJ-CX = 2016 (42) S.T.R. 945 (Raj.)]. 2.1 Department has accepted the judgments where the Hon'ble High Courts dismissed the Department's appeal inter alia holding that substantial benefit cannot be denied because of procedural irregularity. 2.2 In the case of Dashion Ltd., the assessee was engaged in manufacture of water treatment plant and other connected items and was availing benefit of Cenvat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity of its other unit without pro rata distribution by the input service distributor and further the assessee had not registered itself under the Service Tax (Registration of Special Category of Persons) Rules, 2005. 2.5 Hon'ble High Court dismissed the department's appeal holding that such view was not sustainable as there was no previous restriction of this nature under Rule 7 of the Cenvat Credit Rules, 2004. Further non-registration of ISD is only a procedural irregularity for which substantial benefit of Cenvat credit cannot be denied when all the necessary records have been maintained by the respondent." 10. The Hon'ble High Court of Madras referring to the judgment of Dashion Ltd., supra, in M/s. Pricol Ltd., supra has held thu ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
