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2015 (8) TMI 346 - CESTAT MUMBAI

2015 (8) TMI 346 - CESTAT MUMBAI - TMI - Denial of CENVAT Credit - distribution of credit by the Input service distributor (ISD) - Manufacture of exempted goods - Imposition of penalty - whether the credit availed by the appellant is in respect of exempted goods i.e. crude oil etc. is admissible - Held that:- credit can be allowed in respect of services received by the input service distributor before the registration under input service distributor and distributed the same after the registratio .....

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prior to the registration as input service distributor.

Input service distributor should receive invoices under Rule 4(a) of the Service Tax Rules, 1994 towards purchase of inputs services and issues invoices for the purpose of distribution of credit of service tax paid on the said service to such manufacturer or producer or provider, as the case may be. The Rule 2(m) does not stipulates any condition that the invoices issued under Rule 4(a) in respect of purchase of input service s .....

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ture of the dutiable final product which has been observed by the Hon'ble High Court also. Therefore, foremost condition is, input should be received by the appellant and same should be used in or in relation to the manufacture of their dutiable final product is not under dispute.

Appellant has availed credit on invoices issued by the input service distributors under Rule 4A, therefore the documents on which credit was taken is the documents covered under the above rule therefore invo .....

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service covered by the said invoices has been used in or in relation to the manufacture of dutiable final product. In these facts, we find no fault or contravention of the provisions on the part of the appellant therefore Cenvat credit, irrespective any discrepancy, if any found on the part of the input service distributor, Cenvat Credit to the appellant cannot be denied on the ground that input service distributor have received services prior to the obtaining registration as input service dist .....

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mer Lawrie & Co. Ltd. (2000 (1) TMI 74 - CEGAT, NEW DELHI ) judgment cannot be made applicable in present case. As regard various judgments, Eagle Flask Industries Limited and Hari Chand Shri Gopal (1992 (5) TMI 19 - SUPREME COURT OF INDIA) cases on the issue that condition provided for availing any benefit has to be strictly complied with, in absence of the same, benefit provided under scheme cannot be extended to the assessee. - there is no even procedural lapse on the part of the appellant, C .....

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sh Nair: This appeal is directed against Order-in-Original No. 01/CSP(01)COMMR/RGD/11-12 dtd. 06/05/2011 passed by the Commissioner of Central Excise, Customs & Service Tax, Raigad, wherein Ld. Commissioner has passed following order: 1. I disallow the Cenvat Credit of Service tax amounting to ₹ 40,57,15,829/- distributed by Input Service Distributors on services rendered in relation to the manufacture of exempted goods manufactured on the oilfields of Mumbai Offshore availed during th .....

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40,57,15,829/- under Section 11AC of the Central Excise Act, 1944 read with the provisions contained in Rule 15(4) of the Cenvat Credit Rules, 2004 on M/s. ONGC Uran Plant. 4. I order M/s. ONGC Ltd. Uran plant to pay interest, at the appropriate rates & as applicable, in force, under Section 11AB of the Central Excise Act, 1944 read with Rule 14 of the Cenvat Credit Rules, 2004 on credit of ₹ 40,57,15,829/- wrongly availed by them. 5. I also imposed penalty on the Input service distrib .....

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offshore are integrated with the Uran factory through network of oil trunk pipelines. There are different divisions of the appellants looking after different aspects relating to the production platforms at Mumbai offshore. The input service providers raise invoices at the office of these divisions. These divisions receive invoices raised by various services providers in relation to services like drilling, logistics, manpower supply, consulting, etc in relation to production of crude oil at the p .....

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on with the Central Excise department are as under: Sr No Name of ISD Registration No Regd. date 1 Oil and Natural Gas Corporation Ltd. (Mumbai High Asset) AAACO1598AST002 27.02.2009 2 Oil and Natural Gas Corporation Ltd. (Regional Office) AAACO1598AST036 09.03.2009 3 Oil and Natural Gas Corporation Ltd. (Offshore logistics) AAACO1598AST027 27.02.2009 4 Oil and Natural Gas Corporation Ltd. (Neelam Heera) AAACO1598AST013 04.03.2009 5 Oil and Natural Gas Corporation Ltd. (Drilling services) AAACO1 .....

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premises about the fact of distribution of credit and nexus of the services with the manufacture of goods. A Show Cause Notice dated 8.4.2010 was issued to the Appellants proposing to demand Cenvat credit of ₹ 40,57,15,829/- availed by Appellant on the basis of invoices issued by the ISD distributing the credit of service tax paid on input services. The credit was sought to be denied on two grounds namely: The Cenvat Credit distributed by the ISD pertains to input services availed and used .....

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e Respondent vide Order-in-Original dated 6.5.2011 and imposed penalties on the appellants and ISDs. The appellants filed an appeal challenging the Order-in-Original before this Tribunal who vide Final Order reported at 2013 (31) STR 214 (T) affirmed the Order-in-Original against the appellants and imposed penalties. However, the Tribunal set aside the penalties imposed on the ISDs, accordingly appeals of ISDs were allowed. The Tribunal held that the input services are used exclusively at the Mu .....

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Bombay vide Final Order reported at 2013 (32) STR 31 (Bom) allowed the Cenvat credit of service tax paid on input services received in offshore platforms in relation to extraction of crude oil. The Hon'ble High Court of Bombay remanded the matter to the Tribunal to decide whether the appellants are entitled to Cenvat credit of service tax paid on the input services received by the administrative divisions prior to the registration as ISD but distributed by the ISD after taking registration. .....

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e appellants are entitled to Cenvat credit of service tax paid on the eligible input services as held by Hon'ble Bombay High Court received by the administrative divisions prior to the registration as ISD but distributed by the ISD after taking registration, to Uran factory of appellants. The Cenvat Credit Rules do not prescribe any time limit for availing the credit of input services. Hence, the ISD can distribute the credit of service tax paid on input services prior to registration as ISD .....

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rs. The Uran factory of the appellants availed cenvat credit on the basis of the original invoices issued by ISD only and the same was made available to the department for verification. (D) The appellants in this connection refer to the provisions of Rule 2(m) of Cenvat Credit Rules, 2004 and submits that the said rule does not stipulates any condition that ISD can not distribute the credit related to purchase of services prior to ISD registration. (E) Rule 3(1) provides that a manufacturer of f .....

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9(1), it is clear that a manufacturer can avail cenvat credit on input services on the basis of the specified documents. In a case where an ISD wants to avail input service credit, the ISD shall avail the credit in terms of Rule 9(1)(f). In a case where the Uran factory of the appellants wants to avail input service credit through the ISD route, Rule 9(1)(g) shall apply. In the present case, the appellants have availed the credit in dispute on the basis of the original invoices raised by the ISD .....

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at credit. The Cenvat Credit Rules contains no express restriction on distribution of credit earned prior to taking the registration by the ISD also. Hence the ISD can avail credit of service tax paid on input services received prior to registration. (I) The Karnataka High Court in mPortal Wireless Solutions Vs. CST, Bangalore - 2012 (27) STR 134 (Kar.) held that the Registration with department is not a pre requisite for claiming the credit of service tax paid on input services. The Court held .....

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redit. (J) The Tribunal in identical facts allowed the credit of service paid on input services received prior to registration as ISD but distributed by the ISD after taking registration. The Tribunal in Dagger Forst Tools Ltd. Vs. CCE, Mumbai-I - 2013 (30) STR 206 (T) held that there is no timelimit provided under Cenvat Credit Rules in availing the credit of service tax paid on input services. The restriction canvassed by the department that the ISD can distribute only credit of service tax pa .....

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CENVAT Credit in respect of inputs/input service which have been received prior to their registration as an output service provider. (L) The Tribunal WNS Global Services Pvt. Ltd. Vs. CCE, Nashik - 2013 (32) STR 657 (T) held that credit can be availed if nexus between input service and output services has been established. The Head Office being not registered as ISD will not disentile the appellants from availing the credit of service tax paid on input services received by the Head Office. (M) .....

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mit that following facts remain undisputed: (a) the services in question are covered by the scope of definition of "input services"; (b) the appellants have received these services; (c) the appellants have paid service tax to the service provider before availing passing credit via ISD; (d) ISDs have not transferred credit which relates to exempted finished goods; & (e) the invoices raised by ISDs contain all required particulars. (O.1) Once these core facts are established & un .....

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a Conductors Ltd. 2012 (278) ELT 492 (T) b) Doshion Ltd. Vs. CCE 2013 (288) ELT 291 (T) c) Precision Wires India Ltd. Vs. CCE 2013 (31) STR 62 (T) d) Demosha Chemicals Pvt. Ltd Vs. CCE & ST, Daman 2014 (34) STR 758 (T) (O.2) Hence, the appellants submit that non-registration of the divisions as an ISD cannot come in the way of taking of input service credit by the ISD before registration and distributing the same after registration. (P) The appellants in the rejoinder submits that they have .....

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ces issued by the service provider only. These documents are available with the ISDs and there is no dispute raised by the department in the present proceeding regarding availably of documents with the ISDs. Hence, the contention of the Ld. A.R. that the appellants have violated procedural condition is incorrect in law and facts. (Q) The department is not prejudiced by the delay of the assessee in getting registered as ISD. The department can verify the factual position regarding invoices at any .....

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the services in dispute qualify as input services. 4. On the other hand, Shri. Hitesh Shah, Ld. Commissioner (A.R.) appearing on behalf of the Revenue reiterates the findings of the impugned order. In respect of the issue that credit was disallowed on the ground that input service distributor, issued invoices in respect of services received prior to registration as input service distributor, he submits that appellant availed the Cenvat credit against invoices issued by their other unit as input .....

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of 30 days of the commencement of business or 16th day of June 2005 whichever is later. In view of the above provisions the appellant should have obtained registration prior to commencement of the business or 16 th day of June 2005 whichever is later but appellant failed to do so therefore credit which they passed on under input service distributor invoices is not correct and legal, therefore appellant is not entitled for the credit. He also referred to Rule 7of Cenvat Credit Rules, which provid .....

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e the services received prior to the registration does not covered by the provisions of distribution of services. He submits that as per sub Rule (10) of Rule 9 of Cenvat Credit Rules, It is provided that input service provider shall furnish half yearly return to the Jurisdictional Superintendent not later than last day of the manufacture following half year period. In this regard it is his submission that as per the said half yearly return input service distributor is required to declare detail .....

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in other words data in returns can be shown and submitted only in respect of services received on or after registration as input service distributor, for this reason also input service credit relate to the service received by the input services distributors prior to registration is not eligible to be distributed to the appellant, therefore appellant has wrongly availed the Cenvat Credit. He submits that prior to registration whatsoever services were received are not governed by the provision of .....

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not the intention of the law. Registration of input service distributor shall cover all the services received and distributed during the period which is after the input service distributor's registration is obtained. Therefore, in the present case admittedly the services which were received prior to the date of registration as input service distributors were distributed after registration, the same is neither eligible for the distribution nor the appellant is entitled for Cenvat Credit in r .....

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enefit terms and conditions provided therefore is required to be complied with, in absence of compliance of the condition, benefit cannot be provided. Therefore, since in the present case law provides for registration and distribution of the input service by the input service distributor and in respect of service received by the input service distributor has not covered by the registration, therefore Cenvat Credit have been passed on without following the condition of registration. In support of .....

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s not legal and correct and same is not admissible to the appellant. 5. We have carefully considered the submission made by both sides and perused the records. 6. When the matter first time came before this Tribunal, the issue involved was whether the credit availed by the appellant is in respect of exempted goods i.e. crude oil etc. therefore whether the credit is admissible. Secondly, credit can be allowed in respect of services received by the input service distributor before the registration .....

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dit only after date of registered as ISD. We therefore, uphold Commissioner's Order regarding confirmation of demand of ₹ 40,57,15,129/- under Rule 14 of CENVAT Credit Rule, 2004 read with Section 11A of the Central Excise Act. Since confirmation of demand is upheld, interest on the demand amount is also recoverable under Rule 14 of Cenvat Credit Rules read with Sec 11AB of Central Excise Act. 7.2 Coming to issue of imposition of penalty on Uran Plant, it is the contention of the appel .....

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is imposable only under Rule 15(3) of Cenvat Credit Rules and maximum penalty under Rule 15(3) is ₹ 2000/- only. We therefore, find considerable force in the submissions of the appellants and reduce the penalty imposed under Rule 15 of the CENVAT Credit Rules to ₹ 2000/- on the appellants. 7.3 As regards imposition of penalty on ISDs, we find that in show-cause notice penalty was proposed under Rule 25/26 of Central Excise Rule but in the Order-in-Original penalty is imposed under R .....

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mbay High Court wherein Hon'ble High Court has passed following order which is reproduced below: 2013 (32) S.T.R. 31 (Bom.) 13. The Appeal before the Court raises a question of construction of the Cenvat Credit Rules, 2004. Under Rule 3(1), a manufacturer or producer of final products or a provider of taxable service is allowed to take Cenvat credit inter alia of the duty of excise specified in the First and Second Schedules to the Central Excise Tariff Act, paid on the following:- "(i) .....

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nt is that the duty of excise ought to have been paid on any input service received by the manufacturer of a final product. The expression "input service" is defined in rule 2(1) as follows:- "(1) "input service" means any service, - (i) used by a provider of taxable service for providing an output service, or (ii) used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products upto the plac .....

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nd security, inward transportation of inputs or capital goods and outward transportation upto the place or removal." (Emphasis supplied) Here again, clause (ii) is of relevance. Under clause (ii) of rule 2(1), the expression "input service" is defined in broad terms. In order to be an input service under clause (ii), the following requirements must be satisfied. Firstly, the expression requires the utilisation of "any service"; secondly, the service must be used by the m .....

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he manufacturer even indirectly, and in or in relation to the manufacture of a final product. Where the legislature or its delegate uses the expression "in or in relation to", its object and purpose is to widen the scope and purview of the entitlement. When the words "directly or indirectly" and "in or in relation to the manufacture of final products" are used in conjunction that is indicative of the comprehensive sweep and ambit of the statutory provision. Rule 6(1 .....

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he receipt, consumption and inventory of inputs and input services meant for use in the manufacture of dutiable final products and the quantity of inputs meant for use in the manufacture of exempted goods. Rule 6(2) stipulates that a manufacturer can take Cenvat credit only on that quantity of input service which is intended for use in the manufacture of dutiable goods. In other words, Cenvat credit is not admissible on that quantity of input or input service which is not intended for use and is .....

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. In other words, where a service is of the description which is specified in Rule 6(5), the manufacturer is entitled to credit of the whole of the service tax unless the service is used exclusively, that is to say solely in or in relation to the manufacture of exempted goods or any provision of exempted services. 14. Now, in the present case, ONGC is a manufacturer both of dutiable and exempted products. Crude oil as well as natural gases are exempted products. The Tribunal has held against the .....

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ucts would not be entitled to Cenvat credit on such quantity of input service which is used in the manufacture of exempted goods, this being the plain stipulation contained in rule 6(1). This is subject to Rule 6(5) which has an over-riding provision which allows the availment of Cenvat credit in respect of certain specified taxable services unless they are used exclusively in or in relation to the manufacture of exempted goods. But the point to note is that merely because the Appellant manufact .....

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products. It is impossible to accept the hypothesis that would assert, that input services that are utilized by the Appellant in or in relation to the process of manufacture that takes place at Mumbai Offshore is not a service that is used by the manufacturer in or in relation to the manufacture of dutiable final products. The dutiable final products that are manufactured by the Appellant at its Uran plant are fundamentally premised upon the manufacturing process which commences at Mumbai Offsh .....

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cturer, whether directly or indirectly, in or in relation to the manufacture of final products." Such a construction as proposed by the Revenue is impermissible. These words used in the subordinate legislation fulfill the statutory object and purpose of presenting a cascading effect and burden of duty. They must be given their plain and natural meaning. At the same time, it would be necessary to clarify that Cenvat credit can be availed of only on that quantity of input service which is use .....

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ayment of duty, by claiming the benefit of an exemption Notification. The parts were used in the manufacture of tractors on which duty was paid. Modvat credit was denied on the ground that the parts constituted final goods in themselves which were cleared without the payment of duty. The Appellant claimed that the final products were not the parts but tractors and that since duty was paid on tractors, Modvat credit was allowable. The Tribunal affirmed the view that was taken in the course of adj .....

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e 57C of the then Central Excise Rules, 1944 was to streamline the process of payment of duty and to prevent the cascading effect if duty is levied both on the inputs and the finished goods. The Supreme Court held that Rule 57D(2) indicates that an intermediate product may also come into existence in the manufacture of a final product and even though no duty is paid on the intermediate product as it is exempted from whole of the duty, credit would still be allowed so long as duty is paid on the .....

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s the final product was dutiable, the assessee would be entitled to the benefit of Modvat credit. 16. The second decision of the Supreme Court to which a reference must also be made is that in Collector of Central Excise v. Solaris Chemtech Limited - 2007 (214) E.L.T. 481 (S.C.). The explanation to Rule 57A defined "input" inter alia to include inputs used as fuel, this clause being brought into existence on 1 March 1994. In that case, Low Sulphur Heavy Stock (LSHS) was used by the ass .....

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ement or caustic soda and, therefore, LSHS fell within the ambit of the expression used "in or in relation to manufacture of final products". The wide ambit of the expression "used in or in relation to the manufacture of the final product" has been emphasised by the Supreme Court in the following observations:- "Lastly, we may point out that in order to appreciate the arguments advanced on behalf of the Department one needs to interpret the expression "in or in rela .....

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hat the said expression, namely, "in relation to" also finds place in the extended definition of the word "manufacture" in Section 2(f) of the Central Excises and Salt Act, 1944 (for short, the said Act'). It is for this reason that this Court has repeatedly held that the expression "in relation to" must be given a wide connotation. The Explanation to Rule 57A shows an inclusive definition of the word "inputs". Therefore, that is a dichotomy between in .....

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ds "in relation to" which find place in Section 2(f) of the said Act has been interpreted by this Court to cover processes generating been repeatedly held by this Court that if manufacture of final product cannot take place without the process in question then that process is an integral part of the activity of manufacture of the final product. Therefore, the words "in relation to the manufacture" have been used to widen and expand the scope, meaning and content of the expres .....

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anufacture of final product. However, the doubt may arise only in regard to use of some articles not in the mainstream of manufacturing process but something which is used for rendering final product marketable or something used otherwise in assisting the process of manufacture. This doubt is set at rest by use of the words "used in relation to manufacture". In the present case, the LSHS is used to generate electricity which is captively consumed. Without continuous supply of such elec .....

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uts used for generation of electricity will qualify for MODVAT credit only if they are used in or in relation to the manufacture of the final product, such as cement, caustic soda etc. Therefore, it is not correct to state that inputs used as fuel for generation of electricity captively consumed will not be covered as inputs under Rule 57A." We are fortified in the conclusion which we have drawn from these binding principles which have been enunciated in the judgements of the Supreme Court. .....

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ttedly also produces dutiable final products. The production of those dutiable products is possible only on the continuous supply of crude oil. We, however, clarify that as a manufacturer of both dutiable and exempted goods, the Appellant would be required to comply with the discipline and rigour of rule 6 and would be entitled to take Cenvat credit only on that quantity of input service which is used in the manufacture of the ultimate dutiable product. We accordingly answer question (a) in the .....

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rvice distributor's invoices issued in respect of service received by the input service distributor prior to the registration as input service distributor. Therefore in the present case the issue to be decided by us is whether the credit availed on the invoices of input service distributors received in respect of input services prior to the registration as input service distributors is admissible or otherwise. Before going into details, it is necessary to read relevant statutory provisions. .....

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service tax paid on the said services to such manufacturer or producer or provider, as the case may be. In the above definition it provides that the input service distributor should receive invoices under Rule 4(a) of the Service Tax Rules, 1994 towards purchase of inputs services and issues invoices for the purpose of distribution of credit of service tax paid on the said service to such manufacturer or producer or provider, as the case may be. The Rule 2(m) does not stipulates any condition th .....

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edit. (1) A manufacturer or producer of final products or a provider of output service shall be allowed to take credit (hereinafter referred to as the CENVAT credit) of - (i) the duty of excise specified in the First Schedule to the Excise Tariff Act , leviable under the Excise Act ; (ii) the duty of excise specified in the Second Schedule to the Excise Tariff Act, leviable under the Excise Act; (iii) the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Text .....

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ble goods leviable under section 136 read with section 138 of the Finance Act, 2007 (22 of 2007) ; [substituted vide Notification No. 27/2007-Central Excise (N.T.) dated 12-05-2007] (vii) the additional duty leviable under section 3 of the Customs Tariff Act, equivalent to the duty of excise specified under clauses (i), (ii), (iii), (iv), (v), (vi) and (via); [Substituted vide Notification No. 10/2007-Central Excise (N.T.) dated 01-03-2007] (viia) the additional duty leviable under sub-section ( .....

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, dated 13/05/2005) Provided that a provider of taxable service shall not be eligible to take credit of such additional duty; In view of above, a manufacturer of final product shall be allowed, credit of duty paid on inputs and capital goods as well as service tax paid on input service received by him. In the present case, services on which the Cenvat Credit was taken by the appellant have been admittedly received and used in or in relation to the manufacture of the dutiable final product which .....

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e distributor, as the case may be, on the basis of any of the following documents, namely :- (a) an invoice issued by- (i) a manufacturer for clearance of - (I) inputs or capital goods from his factory or depot or from the premises of the consignment agent of the said manufacturer or from any other premises from where the goods are sold by or on behalf of the said manufacturer; (II) inputs or capital goods as such; (ii) an importer; (iii) an importer from his depot or from the premises of the co .....

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he consignment agent of the said manufacturer or importer or from any other premises from where the goods are sold by, or on behalf of, the said manufacturer or importer, in case additional amount of excise duties or additional duty leviable under section 3 of the Customs Tariff Act , has been paid, except where the additional amount of duty became recoverable from the manufacturer or importer of inputs or capital goods on account of any non-levy or short-levy by reason of fraud, collusion or an .....

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cate issued by an appraiser of customs in respect of goods imported through a Foreign Post Office; or (e) a challan evidencing payment of service tax, by the person liable to pay service tax under sub-clauses (iii), (iv), (v) and (vii) of clause (d) of sub-rule (1) of rule (2) of the Service Tax Rules, 1994; or (In clause (e) the words, brackets and figures "sub-clauses (iii), (iv), (v) and (vii)" has been amended vide Notification No. 10/2006-CE(N.T.), dated 25/04/2006 (In clause (e) .....

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t be allowed if the invoice or the supplementary invoice, as the case may be, bears an indication to the effect that no credit of the said additional duty shall be admissible; [Inserted vide Notification No. 35/2007-CE(NT), dated 14-09-2007] From the above rule, it is observed that the appellant being manufacturer can avail the Cenvat credit on the, amongst documents, invoices issued by input service distributors under Rule 4A of Service Tax Rules, 1994. In the present case the appellant has ava .....

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rvice provider. Therefore the documents i.e. invoices issued by input service distributor could not be said to have been issued illegally. Above provisions also does not provide any restriction clause that the credit is not allowed in respect of invoices issued by input service distributors in respect of service received by them prior to registration as input service distributor, therefore we are of the view that documents issued by input service distributors and availment of cenvat credit by th .....

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provisions on the part of the appellant therefore Cenvat credit, irrespective any discrepancy, if any found on the part of the input service distributor, Cenvat Credit to the appellant cannot be denied on the ground that input service distributor have received services prior to the obtaining registration as input service distributors. We have gone through the judgments relied upon by both sides. We find that identical issue has been dealt in the judgments of M/s. Dagger Forst Tools Ltd - E/1276/ .....

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These services were received by them during the period February, 2008 to October, 2008. The department was of the view that since the appellant registered themselves as input service distributor only from 04.10.2008 and not the taxes paid prior to 04.10.2008. Accordingly, a show-cause notice was issued and the appellant was denied credit amounting to ₹ 4,61,039/- on the ground that the services were received prior to 04.10.2008 and the taxes were also paid prior to that date and, therefor .....

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only condition to be satisfied is that they should have paid the service tax prior to availing the credit. So long as this condition is satisfied, there is no time limit prescribed in the Rule within which the CENVAT credit has to be taken. If that be so, there is no reason why in the case of input service distributor alone, a restriction should be placed with respect to availment of CENVAT credit i.e. input service distributor is permitted to distribute only taxes paid on or after registration. .....

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has allowed credit and held that there is no restriction under Cenvat Credit Rule, 2004 with regard to the period for availing Cenvat Credit on service tax paid. We further observed that in the various judgments this Tribunal even in cases where cenvat credit was availed on the invoices which are in the name of the head office which is not registered as input service distributors, the credit was allowed only on the reasoning that there is no dispute about the payment of service tax, receipt of .....

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e only for audit of the records of the Branches of PNB within their jurisdiction and it is the branches which were providing banking services and were individually registered for service tax payment. There is no dispute that the Appellant as Zonal Audit Office were not providing banking/financial services. The point of dispute is as to whether in this factual background, the appellant as Zonal Audit Office of PNB could take Cenvat credit on the basis of invoices issued in their name and distribu .....

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tances of the case, when the Appellant, though not providing the banking/financial services, were registered as provider of banking service since 2004, they should be treated as registered as ISD also, as they were for all practical purposes, functioning as input service distributor and the availment of service tax credit and its distribution to various branches by issue of invoices were being reflected in the ST-3 returns being filed by them, which is what a registered Input Service Distributor .....

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lant is having two units. The invoices which are raised for the services rendered were in the name of the head office and their head office was not registered as input service distributor. 9. On perusal of the records, it transpires that the Cenvat Credit which has been availed for the appellant of the service tax paid based on invoices / challans was in respect of the services provided by the Banks, Insurance Companies, transporters, Telecom Service, CHAs, Couriers, repairing & maintenance .....

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two units. In the entire records, I did not find any such allegation nor there is any findings to indicate that the appellant herein had availed more than the eligible Cenvat Credit of the service tax paid in both the units. The Cenvat Credit availed by the appellant is exactly the amount which has been charged as service tax by the service provider. I find strong force to the contentions raised by the Ld. Counsel that the judgment / order of this bench in the case of Doshion Limited (supra) (pa .....

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it to various units. As submitted by the learned counsel, during the relevant period, there was no restriction for utilisation of such credit without allocating proportionately to various units. The omission to take registration as an Input Service Distributor can at best be considered as procedural irregularity and in view of the decisions cited, has to be considered sympathetically. Further, it is also noticed that appellant has not got any extra benefit by doing this. In fact from the stateme .....

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e decision cited by the learned counsel, the procedural irregularity has to be ignored and the demand confirmed has to be set-aside on this ground. In the result, demand for Cenvat credit of ₹ 1,07,07,142/- with interest and penalty equal to the same imposed under Section 11AC of Central Excise Act, 1944 are set-aside. Modern Petrofils Vs. Commissioner of Central Excise, Vadodara - 2010 (20) S.T.R. 627 (Tri. - Ahmd.): 4. I have considered the submissions made by both the sides. I find that .....

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t as far as the present appeal is concerned, the proceedings are limited by the ground taken in the show cause notice and upheld in the OIO which was that appellants had taken credit wrongly since invoice was not in their name but in the name of their head office. Because of this ground, the whole case becomes one of the invoice not being in the name of the factory. In view of the fact that the invoice was in the name of the head office and there was no dispute raised in the show cause notice as .....

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der Rule 9(2) of Cenvat Credit Rules, 2004, it can be said that there was suppression of fact will full misstatement etc. He has relied upon the decision of the Hon'ble Supreme Court in the case of M/s. L & T Ltd. [2007 (211) E.L.T. 513 (S.C.)]. In view of the fact that there is no allegation of non receipt of input service or the allegation of service not relatable to the factory and also in view of the fact that invoice was in the name of head office of the same factory and not in the .....

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ere was no provisions for distribution of the Cenvat Credit availed by the head office as ISD proportionately to various units (the provision is brought in the statute from 17.05.2012), I am convinced that the ratio of the decisions as cited herein above as the issue is in favour of the assessee. Accordingly, I set aside the impugned order and allow the appeal with the consequential relief, if any. 2010 (250) E.L.T. 352 (Kar.) COMMISSIONER OF C. EX., BANGALORE-I Versus RAJA MAGNETICS LTD 10. We .....

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appellate commissioner and by the Tribunal, the authorities having found as a matter of fact that in respect of the value of the goods amounting to ₹ 68,052/- the duty, in fact, had been paid at one point or the other and such duty paid goods constitute an input in respect of which assessee had availed of Cenvat credit, that in our opinion, is substantial compliance of the requirement and does not involve a question of law of general importance either for the assessee or for other assessee .....

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ors or even on the part of the appellant it is only procedural lapse and for which Cenvat credit cannot be denied, this has been held in various judgments of this Tribunal, some of the judgments are referred below: 2012 (278) E.L.T. 492 (Tri. - Ahmd.) Commissioner of Central Excise, Vapi Versus Samita Conductors Ltd. 3. I have considered the submissions. I find that the decision in the case of Jindal Photo Limited was rendered in exactly similar circumstances. In that case also the registration .....

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pt of goods is verifiable but not the services. In this connection it would be worthwhile to see the provisions to provisos of sub Rule 2 of Rule 9 of Cenvat Credit Rules, 2004. According to the said proviso, if the invoices do not contain all the particulars but contains certain details specified therein, the Assistant Commissioner can allow the credit on the basis of such defective documents, if the goods or services covered by such documents, have been received and accounted for in the books .....

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oblem in implementing the rules, the rules have to be got amended but certainly the submissions like this not called for. In view of the fact that the ratio is covered by the decision of this Tribunal and I do not find anything wrong with the decision of the Commissioner in following the same and I also find the submission that why this decision is not applicable are not at all correct, I find no merit in the appeal filed by the Revenue and accordingly reject the same. 2013 (288) E.L.T. 291 (Tri .....

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t without allocating proportionately to various units. The omission to take registration as an Input Service Distributor can at best be considered as procedural irregularity and in view of the decisions cited, has to be considered sympathetically. Further, it is also noticed that appellant has not got any extra benefit by doing this. In fact from the statement of Shri Chandresh C. Shah, as explained that above cenvat credit available to them, 20% of service tax payable only was paid and balance .....

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ground. In the result, demand for cenvat credit of ₹ 1,07,07,142/- with interest and penalty equal to the same imposed under Section 11AC of Central Excise Act, 1944 are set-aside. 2013 (31) S.T.R. 62 (Tri.- Ahmd.) Precision Wires India Ltd. Versus Commissioner of Central Excise, Vapi 7. I find that factually there is no dispute regarding the receipt of input services at the head office. It is also undisputed that the said services can be distributed by the head office to the various facto .....

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s the reliance placed by the learned Additional Commissioner (AR) on the Division Bench decision in the case of Hindustan Coca Cola and Beverages Pvt. Limited (supra), I find that the said order of the tribunal is an interim order while disposing the stay petition and it is not a final order. The orders which have been relied upon by the learned counsel as mentioned in hereinabove are the final orders and in respect of an identical issue. 9. In my view, the ratio laid down by this Bench in the c .....

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that registration and issuance of input service distributor invoices is procedural requirements. We agree with these propositions for the reason that important aspect for availing the credit is that service which has been provided by the service provider, it should have service tax paid character, invoices as against sale of service should be tax paid. The registration and issuance of input service distributor invoices is merely a procedural requirement. In this procedure neither input service .....

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the reliance on various judgments by the Ld. A.R. we found that in the case of Showa India (P) Ltd. (supra), the fact was that appellant availed the Cenvat Credit against invoices issued and services received were prior to their Central Excise registration. However in the present case the fact is entirely different that the appellant was very much registered with the Central Excise and credit was availed on the invoices issued after appellants registration and services received and used was also .....

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