TMI Blog2014 (7) TMI 704X X X X Extracts X X X X X X X X Extracts X X X X ..... ses issuing credit taking document. In the facts and circumstances, appellant cannot take credit of the document issued by a premises not registered as an Input Service Distributor under the service tax provisions. Argument of the appellant that extended period is not applicable in this appeal will not help their case as nowhere it has been brought to the knowledge of the department that cenvat credit is being taken by the appellant on a document issued by the service recipient who is not registered as ISD under Rule 3 of the ‘Service Tax (Registration of Special Category of Persons) Rules 2005’ read with Rule 7 of the Cenvat Credit Rules,, 2004 - Following decision of Mangalore Refinery and Petrochemicals vs. CCE Mangalore [2013 (9) TM ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mises were neither registered as service provider nor as input service distributor , the appellant was not eligible for CENVAT Credit of service tax paid on input services used at these unregistered premises. The lower authorities confirmed demand of service tax of ₹ 6,97,948/- along with interest and imposed of equivalent amount under Rule 15 of the CENVAT Credit Rules 2004 read with Section 78 of the Finance Act 1994. 3. Shri H. D. Dave, (Advocate) appearing for the appellant, argued as follows: (a) That the Document Retention Centre was a part and parcel of the business activity of provision of stock broker service by the appellant from its registered premises. The fact that the appellant had taken on rent the premises a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts etc. with intent to evade payment of service tax, particularly when the availment of CENVAT credit was duly reflected in appellant s periodical ST-3 Returns and there was no allegation as to the eligibility of the input services for CENVAT Credit. For the same reasons, penalty was not imposable under Section 78 of the Finance Act 1994. (c) The Original Authority has pointed out defects in duty paying documents for denial of CENVAT Credit of service tax but the said ground was not canvassed in the Show Cause Notice, and thus denial of CENVAT Credit on such ground is not proper and legal. 4. On the other hand Shri Manoj Kutty, Ld. A.R. for the respondent, reiterated the findings of the lower authorities and argued that the impugned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unit are clear. ISD, as defined under Rule 2(m) of the CENVAT Credit Rules, 2004 read with Rule 2(ccc) of the Service Tax Rules, 1994, is an office of the manufacturer/producer of final products or the provider of output service, which receives invoices issued under Rule 4A of the Service Tax Rules, 1994 towards purchase of input services and issues invoice/bill/challan for the purpose of distributing credit of the service tax paid on the said input services to such manufacturer/producer or service provider. Rule 3(1) of the Service Tax (Registration of Special Category of Persons) Rules, 2005 requires an ISD to obtain registration with the Department. Sub-rule (2) of Rule 4A of the Service Tax Rules, 1994 provides the manner in which a reg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of CENVAT credit by the Mangalore unit on the basis of the invoices issued to the Mumbai office by the input service provider is not vitiated by the nature and/or the contents of the invoices used by the manufacturing unit, it would be tantamount to rendering the ISD-related provisions otiose. The aforesaid provisions made by the legislative authority are special provisions governing the registration and conduct of input service distributors. Such provisions must prevail over general provisions. By arguing that the CENVAT credit on BOFS cannot be denied to the manufacturing unit by reason of defects of documents, the learned counsel was virtually invoking the general provisions. At the risk of repetition, I must say that the special provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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