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TMI Blog2025 (3) TMI 259X X X X Extracts X X X X X X X X Extracts X X X X ..... T Credit Rules, 2004 ('CCR, 2004'). (ii) The appellant-company has a head office, central marketing office and an east zonal marketing office, for which registration as Input Service Distributors ('ISD') was obtained under Rule 2(m) of CCR, 2004. The head office and the central marketing office were common to all units of the Appellant Company located in India, whereas the east zonal marketing unit was directly related to few units located in the eastern zone of India. Being registered as ISDs, all such offices distributed the CENVAT Credit of the common input services (advertisement, legal, event, courier, C&F, audit, rent, telecommunication, repairs, tours, etc.) to the concerned units of the appellant-company in accordance with the applicable rules of CCR, 2004. (iii) Further, the east zonal marketing office was also registered under the Finance Act, 1994 as a recipient of Goods Transport Agency ('GTA') services, discharging service tax thereon under reverse charge mechanism and distributing the credit thereof through ISD. (iv) On the basis of EA-2000 audit of the Appellant's records conducted, the Department issued the underlying Show Cause Not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of M/s. The Ramco Cements Ltd. v. Commissioner of C.Ex., Puducherry [2023 (12) TMI 1332 - CESTAT, Chennai (LB)]. He also cited the following decisions in support: - i. Bharat Fritz Werner Ltd. & Ors. v. Commr. of Central Tax, Bangalore [2022 (7) TMI 352-Karnataka High Court] ii. Ultratech Cement Ltd. v. CCE, Kutch (Gandhidham) [2019 (2) TMI 1487-CESTAT Ahmedabad] as affirmed in 2020 (3) TMI 1206-Gujarat High Court iii. ACC Ltd. v. Commr. of CGST [2025-TIOL-126-CESTAT-DEL] iv. Hindustan Zinc Ltd. v. CCE, Meerut [2023 (11) TMI 299-CESTAT Allahabad] v. Inox Air Products Pvt. Ltd. v. The Asst. Commr. CE & ST, [2024 (4) TMI 32-Himachal Pradesh High Court] 4.1. He submits that the CENVAT Credit availed on clearing and forwarding agency service is duly eligible to the appellant. To support this contention, reliance is placed on the following decisions: - i. CCE v. Cadila Healthcare Ltd. [2013 (30) STR 3 (Guj.)] ii. Nitco Ltd. v. C.C.E. & S.T. Daman [2022 (7) TMI 12-CESTAT Ahmedabad] iii. Ashirvad Pipes Pvt. Ltd. v. CCE, Bangalore [2013 (31) STR 693 (Tri.-Bang.)] 4.2. The Ld. Counsel for the appellant further submits that the CENVAT Credit for the remaining input servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ive activities [Ace Glass Containers v. CCE, 2010 (250) ELT 110 (T) as affirmed in 2014 (34) SRE 805 (Uttar.)] Courier Used for sending documents and correspondences in relation to the daily activities to be carried out by the appellant [JSW Steel Limited v. CCE, 2014 (36) STR 801 (T)] Management Consultancy Used in relation to liaising another professional work which are used in relation to the manufacturing activity of the Appellant [KPMG v. CCE, 2014 (33) STR 96 (T)) Repair and Maintenance Used for carrying out repair and maintenance activities of the generator, photocopying machine godown, etc. [KPMG v. CCE, 2014 (33) STR 96 (T)] Banking Financial Services and used in relation to business activities like collection of sales proceeds, export payments, etc. [Lupin Ltd. v. CCE, 2015 (39) STR 249 (T)] Hotel Services Used in business tour of marketing staff for promoting sales of the Appellant [IVY Comptech Pvt. Ltd. v. CCE, 2016 (42) STR 66 (T)] Chartered Accountant Used for carrying out audit, accounting, consultation on various matters, certification, etc. [Utopia India Pvt. Ltd. v. CCE, 2011 (23) STR 25 (T)] Legal Services Used for arranging legal representatives in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edit on the basis of invoices issued by their ISD and admittedly, no proceedings had been initiated against the ISD. In these circumstances, the CENVAT Credit availed at the end of the appellant cannot be denied, as held by this Tribunal in the case of Indsil Energy Electrochemicals Ltd. v. Commissioner of C.Ex. and S.Tax, Raipur [2016 (9) TMI 944 - CESTAT, New Delhi] (Final Order No. 53555 of 2016 dated 12.09.2016 in Excise Appeal No. 52453 of 2016 - CESTAT, New Delhi]. The relevant observations made by the Tribunal in the above case are reproduced below: - "5. From the appeal records, I find that the appellant has submitted copies of the ISD invoices on the basis of which they have availed the Cenvat credit on various services. I also find that copies of these invoices were also submitted before the First Appellate Authority. However, I find that no specific findings has been recorded by the Commissioner (Appeals) on this important issue. From the perusal of some of these sample invoices, I find that the credit on various services such as CHA, handling charges, insurance etc. have been availed for export of goods at the port of export. The credit for these services stand availe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice distributor has registered to decide the dispute regarding eligibility or otherwise of the service tax credit that the input service distributor has taken and proposes to pass on to others." 8. In view of the foregoing and also on the factual matrix on the merits of the case, we find that the impugned order is unsustainable and is liable to be set aside and we do so. Accordingly, the impugned order is set aside and the appeal is allowed" 6. From the records, I find that no such proceedings is on record against the ISD. The dispute in the present proceedings has been initiated by the Revenue against the appellant for availing Cenvat credit on the basis of ISD invoices, on the allegations that the services for which such credits have been availed are not covered by the definition of input services. The proper assessee against whom such proceedings, if at all, ought to have been initiated against is the input service distributor. The proceedings for disallowing the credit would have to be set aside." 8.1. Hence, we observe that the CENVAT Credit in respect of the said input services cannot be denied to the appellant. 9. In view of our above observations, we hold that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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