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2016 (12) TMI 983 - AT - Central ExciseDenial of CENVAT credit - Rent-a-Cab service - Security service - mobile phones - denial on the ground that invoice in respect of such distribution of credit is not in proper format and service provided at job workers place where the job worker is carrying out cutting process of paper on behalf of the appellant - distribution of credit by ISD before obtaining registration - Held that: - As regard the issue, where the appellant has taken the credit not on valid invoice but on the allocation chart, I find that whatever document on which credit was passed on, if it contains all the information as required under Rule 4A of Service Tax Rules, 1994, the said document should be accepted and the credit cannot be denied. As regard the registration issue whether the ISD can distribute the credit before obtaining registration has been settled in the judgments in the case of Commissioner of C. Ex. Vs. Dashion Ltd. [2016 (2) TMI 183 - GUJARAT HIGH COURT], where it was held that there is nothing in the said Rules which would automatically and without any additional reasons disentitle an input service distributor from availing Cenvat credit unless and until such registration was applied and granted. It was in this background that the Tribunal viewed the requirement as curable. Particularly when it was found that full records were maintained and the irregularity, if at all, was procedural. As regards rent-a-cab service, the vehicle is used for transportation of employee for the purpose of factories activity. Therefore Rent-a-Cab service falls within the ambit of definition of input service. As regards security service, since the security service was received by the appellant even though at job worker’s place but it is in relation to job work activity carried out on behalf of the appellant, the job work activity is part and parcel of the over all manufacturing of the final product. Therefore the security service is used in or in relation to the manufacture of final product. In my considered view the credit is admissible on the security service. As regard credit on mobile phone which was denied on the ground that it does not have nexus with in or in relation to the manufacturer, it was found that as per the submission of the Ld. Counsel they are not contesting the same, as they already reversed the credit of ₹ 1847/-. On that count, I therefore uphold the demand of ₹ 1847/- related to mobile phone service. Penalties set aside, as major portion of demand is dropped - appeal disposed off - decided partly in favor of assessee.
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