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2015 (11) TMI 233 - AT - Service TaxDenial of CENVAT Credit as distributed by the head office - Department denied the same on the ground that the head office of the appellant is not registered as Input Service Distributor - Held that:- So far as claim of CENVAT credit prior to 1.4.2008 is concerned, law has permitted grant of CENVAT credit in respect of service tax paid to avail GTA services. There shall be no dispute on this count. However, whether status of ISD registration is sine qua non is the question. When the credit claimed on the services availed was not disputed nor even service tax paid is in dispute, so also the genuinity of the parties is not disbelieved, denial of CENVAT credit of the service tax suffered by the head office of the appellant shall be detrimental to the interest of justice. There is also no finding that service tax paid by the head office were not connected to the business of the appellant or were irrelevant - Even if unregistered, the liability under law remains unchanged. Therefore, denial of the distribution of CENVAT credit during unregistered period shall be anomaly to law when tax liability incurred is ordered to be paid. Accordingly, in so far as distribution of service tax credit prior to 1.4.2008 is concerned, the appellant is entitled to the CENVAT credit thereof. - Decided partly in favour of assessee.
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