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2018 (3) TMI 603 - AT - Central ExciseCENVAT credit - input services distributor (ISD) - credit disallowed for the reason that the appellant has not obtained ISD registration - Held that: - There is no whisper in the show cause notice alleging the manner of distribution of credit to be improper. The appellants have distributed the credit as per the law provided in Rule 7 as it stood during the relevant period. Since there is no allegation in the SCN as to the manner of distribution of credit as improper, it is not necessary to enter into such discussion - the disallowance of credit for the reason that appellant has not obtained ISD registration is unjustified and requires to be set aside Credit was also disallowed alleging that the invoices are raised in the address of the Bangalore and Pune office but credit has been availed at Hosur unit - Held that: - The definition of input services does not state that the services have to be availed within the factory - the disallowance of credit is unjustified and requires to be set aside. CENVAT credit - duty paying documents - credit availed on the basis of debit notes, which were held as not valid documents - Held that: - Department does not have a contention that the appellant has not discharged the service tax on the said services on which credit has been availed - the disallowance of credit on this ground is unjustified. CENVAT credit - duty paying documents - credit availed on the basis of photocopies - Held that: - The appellant cannot avail credit on photocopies. These are not valid documents for availing credit. Further, if such practice of availing credit on photocopies of invoices is allowed, then it will lead to false claims of credit made by assessees - credit denied. CENVAT credit of ₹ 16,21,219/- denied on various input services stating that these services are not availed in relation to the activity of manufacture - Held that: - According to appellant, all these services have an integral connection with the manufacture of finished products. That these services were consumed to carry out the activity of manufacture effectively and also to provide export of services / goods - it is found that the adjudicating authority has not made adequate discussion in this regard. Ld. counsel has submitted that they would be able to establish the nexus of the services with the output services / manufacturing activity, if they are given a further chance - matter on remand. Appeal allowed in part and part matter on remand.
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