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M/s National Engineering Industries Ltd. Versus Commissioner of Central Excise, Jaipur-I

2015 (9) TMI 1035 - CESTAT NEW DELHI

Denial of CENVAT Credit - whether appellant is entitled to avail Cenvat Credit on the services which has been availed by their Head Office and the Head Office is not registered as input service distributor during the impugned period or not - Held that:- appellant cannot be denied Cenvat Credit availed by them in the absence of registration as input service distributor by the Head Office - relying on the case laws cited by the Ld. Counsel in the case of Demosha Chemicals Pvt. Ltd. (2014 (2) TMI 2 .....

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e Appellant : Shri Bipin Garg, Adv For the Respondent : Shri M S Negi, DR ORDER Per Ashok Jindal The appellants are in appeals against the impugned orders denying availment of Cenvat Credit by them. 2. The facts of the case are that the appellants is a manufacturer of Ball Bearing and having three units at Jaipur, Manesar and Newai. They are having their central Head Office at Jaipur. The appellant availed certain services like Selling Commission, Royalty, Consultancy & Professional, Banking .....

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, 100 % credit is not entitled for Jaipur unit. In these set of facts, for the period February 2006 to March 2009 different show cause notices were issued to deny Cenvat Credit to the Jaipur unit. The show cause notices were adjudicated. Cenvat Credit was denied. Consequently, demand on duty was raised along with interest and penalty were also imposed on the appellant. Aggrieved from the said orders appellant is before us. 4. Shri Bipin Garg, the Ld. Counsel for the appellant submits that it is .....

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ore, he submits that appellant has correctly taken the Cenvat Credit, merely having no registration as Input Service Distributor does not effect the entitlement of Cenvat Credit to them. To support his contention he relied on the decision in the case of Demosha Chemicals Pvt. Ltd. Vs. CCE Daman-2014 (34) STR 758 (Tri) , in the case ofDoshion Ltd. Vs. CCE Ahmedabad-2013 (288) ELT 291 (Tri) in the case of Greaves Cotton Ltd. Vs. CCE Chennai-2015 (17) STR 395 (Tri) . Therefore, he prayed that appel .....

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. He further submits that appellant is not registered as Input Service Distributor, Therefore, the Cenvat Credit on the services availed by the Head Office cannot be availed by the appellant. He submits that as there is a rule frame for availment of Cenvat Credit and appellant has not followed the procedure under Rules, therefore, they are not entitled to take Cenvat Credit. To support his contention he relied on the decision in the case of CCE Thane-Nicholas Piramal (India) Ltd.-2009 (244) ELT .....

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e impugned period or not. The same issue came up before this Tribunal in the case of Demosha Chemicals Pvt. Ltd. (Supra) wherein the facts are as under: "The facts from records transpires that the appellant had availed the Service Tax credit for the period from September, 2006 to July, 2011 of an amount of ₹ 40,83,617/- on the basis of documents i.e. Invoices/challans, raised by various service providers viz. Banks, Insurance Companies, transporters, MTNL and others for telephone, CHA .....

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read with Rule 4A(1) of the Service Tax Rules, 1994, therefore, the credit availed by them on the basis of those bills/documents are not admissible. Consequently, a show cause notice was issued to the appellant proposing to disallow/demand the credit availed by them along with interest, imposition of penalty was also proposed. After following due process of law, adjudicating authority confirmed the demand of Cenvat credit amounting to ₹ 40,83,617/- under Rule 14 of Cenvat Credit Rules, 20 .....

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Insurance Companies, transporters, Telecom Service, CHAs, Couriers, repairing & maintenance services. The invoices were issued on the name of the registered/head office situated at Mumbai. It transpires from the records that there is no dispute as to the fact that the services were rendered in this case, The dispute as correctly pointed out by the ld. Counsel is only on the ground that the head office of the appellant having not being registered as input service distributor, the entire tax .....

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ld. Counsel that the judgment/order of this bench in the case of Doshion Limited (para 5) and Modern Petrofils (para 4) are directly on the point." 8. Further in the case Doshion Ltd. (Supra) again this Tribunal has examined the issue and observed as under: "We have considered the submissions made by both sides. We find considerable force in the arguments advanced by the learned counsel. The registered office and Vatva office both are located in the same place and appellant has simply .....

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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 was paid in cash, In fact, proper distribution would have enabled them to utilise full credit. It would show that the exercise is totally Revenue neutral and no loss has been caused to the Revenue (infact Revenue has gained). In the absence of any legal requirement to avail credit based on the services re .....

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