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2023 (2) TMI 607 - CESTAT NEW DELHIDisllowance of CENVAT Credit - duty paying documents - invoices issued to the offices of the appellant situated in other cities, which are unregistered - corelation of the input consultancy engineering service received by the appellant with the output consultancy service rendered to others - HELD THAT:- Admittedly, appellant have provided taxable output service of engineering consultancy service to other metro projects located in other cities like Hyderabad, Chennai, Pune, Kolkata etc. For providing this service, appellant have also set up offices in those cities. Rule 2(l) of CCR provides –input service means any service used by provider of output service for providing an output service. This rule further provides that such input service may have been used by the manufacturer/service provider either directly or indirectly. Thus, one to one co-relation is not required for taking Cenvat credit under Rule 3 of CCR. Once credit have been rightly taken, there is no restriction in use of such credit for payment of either central excise duty or service tax or any other specified tax liability. Further, Rule 6(5) of CCR provides that the provisions of Rule 6(1), (2) and (3) are not applicable, where input service received is used both for providing taxable and tax free output service. Admittedly, in the facts of the present case, appellant have utilised the input consultancy engineering service both for providing tax free output service of passenger transport and taxable output service of consultancy engineering service. Accordingly, the demand of disallowance of Cenvat credit of Rs. 6,17,84,781/- is set aside. Disallowance of Cenvat credit with regard to input service received at the unregistered offices of the appellant located in other cities like Hyderabad, Chennai, Pune etc. - HELD THAT:- It is admitted fact that such offices were opened by the appellant for providing output taxable service of engineering consultancy service. Further, Admittedly, appellant have accounted for the receipt of output taxable service provided from those offices which have been accounted for at the Delhi office and subjected to service tax. Further, condition of being registered is not essential for taking Cenvat credit, as have been held by Hon’ble Karnatka High Court in mPortal India Wireless Solutions Pvt Ltd. vs. Commissioner of Service Tax, Bangalore [2011 (9) TMI 450 - KARNATAKA HIGH COURT] - Demand set aside. As the appeals are allowed on merits, in favour of the appellant-assessee, the penalty imposed under Section 78 r/w Rule 15 of CCR set aside. Appeal allowed.
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