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2023 (9) TMI 286 - AT - Central ExciseCENAVT Credit - procedural irregularity - credit distributed by various depots of the Appellant spread across the country - credit denied on the ground that the depots were either not having the Service Tax registrations at all, or the credit has been distributed prior to obtaining the registration - HELD THAT:- It is an undisputed fact that services received by the depots are eligible input service to the Appellant, as the depots are their place of removal and all the expenditure incurred upto the place of removal has already been included in the assessable value on which duty has been paid. It is also not in dispute that the said input services have been received by the depots and appropriate service tax has been paid. Under such circumstances, denial of CENVAT credit merely on the ground of non-registration/delay in registration of the depots is not sustainable. In the case of THE COMMISSIONER OF CENTRAL EXCISE, O/O THE COMMISSIONER OF CENTRAL EXCISE, CUSTOMS & SERVICE TAX VERSUS M/S. PRICOL LTD. [2021 (2) TMI 495 - MADRAS HIGH COURT], it has been held Credit availed and distributed by respondent prior to getting registered as an input service distributor not deniable. Central Board of Excise and Customs has issued Circular No. 1063/2/2018-CX dated 16.02.2018, wherein the various decisions of the High Court have been accepted with an objective to reduce litigation and dispose of the cases on similar questions of law or identical case on facts pending with the department. In the said circular, the Board has accepted the decision of Hon’ble High Court of Gujarat in the matter of COMMISSIONER OF CENTRAL EXCISE VERSUS DASHION LTD [2016 (2) TMI 183 - GUJARAT HIGH COURT], wherein the Hon’ble High Court dismissed the department’s appeal holding that non-registration of ISD is only a procedural irregularity for which substantial benefit of CENVAT credit cannot be denied when all the necessary records have been maintained by the respondent. Thus, substantial benefit cannot be denied merely on account of procedural infractions - Since, credit is held to be admissible the question of demanding interest and imposing penalty does not arise - appeal allowed.
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