2018 (5) TMI 774 - AT - Central Excise

CENVAT credit - denial on the sole ground that during the relevant period their head office was not registered as ISD - Held that - Hon ble Gujarat High Court in the case of CCE vs. Dashion Ltd. 2016 (2) TMI 183 - GUJARAT HIGH COURT has held that there is nothing in the Rules of 2005 or in the Rules of 2004 which would automatically and without any additional reasons dis-entitle an input service distributor from availing Cenvat credit unless and until such registration was applied and granted - credit cannot be denied - appeal allowed - decided in favor of appellant.

Summary

Issues involved: Denial of cenvat credit due to head office not being registered as ISD.

Analysis:
1. The appeals before the Appellate Tribunal CESTAT NEW DELHI were disposed of by a common order as they arose from the same impugned order passed by the Commissioner (Appeals), and the issue involved was identical.

2. The appellants, engaged in manufacturing high chrome grinding media balls and alloy steel castings, were denied cenvat credit for duty on input services due to their head office not being registered as an Input Service Distributor (ISD). This denial was based on the Tribunal's decision in a previous case. However, the appellant's advocate cited a decision of the Hon'ble Gujarat High Court in a different case, which contradicted the Tribunal's decision. The Tribunal had also followed the Gujarat High Court's decision in another case.

3. Given that the issue had been settled by the Hon'ble Gujarat High Court and was followed by the Tribunal, the Member (Judicial) found that the matter was no longer res integra and was in favor of the appellant. Consequently, the impugned order was set aside, and both appeals were allowed with consequential relief.