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TMI Blog2008 (10) TMI 141X X X X Extracts X X X X X X X X Extracts X X X X ..... Shri P. Karthikeyan, Member (Technical) (Final Order No 1221/2008 dt 28.10.2008 certified on 5.11.2008 in Appeal No. ST/104/2007) Shri G. Natarajan, Adv. for Appellants Smt. R. Bhagyadevi, SDR for Respondent [Per P.G. Chacko].- This appeal is against denial of CENVAT credit on capital goods amounting to over Rs. 32 lakhs for the period 2004-05 and 2005-06 (upto June,'05). The appellants, M/s. Bharat Sanchar Nigam Ltd. (BSNL, for short) are rendering taxable services including telephone services to their subscribers all over India For rendering such services effectively, they have divided the country into what are called "Secondary Switching Areas' (SSAs) for short. Some of these SSAs coming within the State of Tamil Na ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efit of CENVAT credit on capital goods ought not to have been denied to M/s. BSNL. at SSA Salem on the technical ground that the goods were not supplied to the SSA by CSD, Madurai under registered first stage dealer's invoice. It is argued that a substantive benefit like CENVAT credit should not be denied on procedural grounds. In this connection, case law has also been cited [ TISCO Ltd. Vs. Commissioner - 2001 (133) ELT 761 (Tri.-Kol.). 3. We have heard the learned SDR also, who refers to the definition of "first stage dealer" given under Rule 2 of the CENVAT Credit Rules, 2004 as also to the various 'Cenvatable' documents specified under Rule 9 of the said rules. It is submitted that, during the period of dispute, the transfer of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ir Salem SSA from CSD, Madurai prior to September, 2005. The lower authorities, however, denied CENVAT credit to the appellants on the ground that the capital goods were not received by the Salem SSA under cover of "first stage dealer's" invoices. On a perusal of the provisions of Rule 9 of the CENVAT Credit Rules, 2004 read with the definition of "first stage dealer" given under Rule 2 of the said rules, we find that the benefit of CENVAT credit of the duty paid on capital goods is admissible to a provider of output service in respect of capital goods received from a first stage dealer under cover of an invoice issued by the latter. Strictly speaking, a "first stage dealer" is one who has purchased goods from its manufacturer and sells it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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