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2016 (6) TMI 313 - CESTAT CHENNAI

2016 (6) TMI 313 - CESTAT CHENNAI - TMI - Eligibility for availment of Cenvat credit - Excise duty paid on inputs and capital goods as well as Service tax paid on Input services - Invoices addressed to appellant's head office at Chennai based - valid duty paying documents - services relatable to "trading" - not registered as Input Service Distributor during the period April 2011 to March 2012.

Held that:- it is found that this Bench of the Tribunal, in the case of Pricol Ltd. Vs CCE C .....

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trading of goods should be looked into by the adjudicating authority and for that purpose, I remand the matter back to the adjudicating authority to have a relook into the whole issue. In the event, if it is found that appellant has availed the credit which are used for trading of goods, they shall reverse the same immediately. Since the credit is held to be eligible, the consequential penalty is also set aside. - Appeal disposed of - Appeal No. E/40122/2015, Appeal No.E/40126/2015, Appeal No.E .....

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ice at Chennai. The appellants are registered with Service Tax department for payment of service tax on output service rendered by them, and are regularly filing ER-1 returns for excisable goods cleared on payment of duty. The appellants availed credit for Excise duty paid on inputs and capital goods as well as Service tax paid on Input services. Show cause notices were issued for different periods which culminated in passing of respective OIOs. On appeal, the learned Commissioner (Appeals) uphe .....

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2004 E/40126/ 2015 24/2013-CE dt. 27.5.2013 12/2014 (M-III) Dt. 10.11.2014 Jan 2012 To March 2012 Duty : 3,66,607/- + Interest + Penalty : ₹ 2000/- u/r15(1) of CCR 2004 The disallowance of credit by the lower authorities was on the ground that the invoices addressed to appellant's head office at Chennai based on which the appellant availed credit, was not valid document and also the services relatable to "trading" are not input services within the meaning of "Input Serv .....

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Non-taking of registration is only a procedural lapse for which substantial benefit of credit cannot be denied. He submits that though ISD registration was taken on 18.3.2013, thereafter no SCN have been issued. He fairly submitted that for the purpose of verification of records on the issue of trading activities rendered by appellant, the matter may be remanded to the original authority. He relied on the following case laws :- (1) CC & CEX Vs DNH Spinners 2009 (16) STR 418 (Tri.-Ahmd.) (2) .....

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r Head office. They are having two units (i) at Ranipet (ii) at Ahmedabad. On any invoice addressed to H.O., there is pretty chances of availing of credit by the other unit. The Head office should have got registered as "Input Service Distributor" (ISD) and distributed the credit accordingly. They can very much distribute the credit. The invoices also relate to Banking charges. The main allegation is that the invoices are addressed to H.O. He submits that when the appellants are also e .....

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facturer of Ceramic Fiber Products and are registered with Service tax department. The credit which was held to be ineligible in the present dispute is for the reason that the appellants had availed the credit of excise duty paid by their Head office at Chennai and that they were not registered as Input Service Distributor during the period April 2011 to March 2012. It is the case of the Revenue that the appellant had also involved themselves in trading activities and the credit to that extent o .....

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ion. The relevant paragraphs 7 & 8 of the Tribunal's decision are reproduced as under :- 7. Perusal of the substantial law in Rule 2(m) leads to the conclusion that appellant was entitled to the credit for no finding on the genuinity of the credit availed and such credit allocated by the ISD. Similarly, there was no disintegration between the appellant and its head office. There is also no finding that the credit which the appellant availed is not attributable to its manufacturing activi .....

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ved the appellant from its genuine claim of credit due to delay in registration process prescribed. We may state that procedure is not tyrant of the law but is servant thereof and justice cannot be denied for reasons attributable to the procedural law. Honble Supreme Court in the case of Sambhaji v. Gangabai - 2009 (240) E.L.T. 161 (S.C.) held that procedural law should not dominate over the substantial law to deprive the litigant from the process of justice. Therefore, the procedural law deser .....

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opportunity of participating in the process of justice dispensation. Unless compelled by express and specific language of the statute, the provisions of CPC or any other procedural enactment ought not to be construed in a manner which would leave the court helpless to meet extraordinary situations in the ends of justice. 10. The mortality of justice at the hands of law troubles a Judges conscience and points an angry interrogation at the law reformer. 11. The processual law so dominates in cer .....

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