TMI Blog2019 (7) TMI 569X X X X Extracts X X X X X X X X Extracts X X X X ..... rical wing, which caters to several SSA s. Further, cenvat credit of service tax / inputs or capital goods, is not confined to the registered premises, but can be availed even if capital goods are received beyond the registered premises for providing output services. The appellant is entitled to credit on capital goods, input services and inputs which are received in one SSA and are distributed to other SSA - Appeal allowed - decided in favor of appellant. - Service Tax Appeal No. 1692 of 2012-SM - Final Order No.50553/2019 - Dated:- 16-4-2019 - Mr. Anil Choudhary, Member (Judicial) Sh. O. P. Agarwal, Advocate for the appellant Sh. P. R. Gupta, Authorised Representative for the respondent Anil Ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ttedly the other SSA has not taken cenvat credit of service tax in question on proportionate basis. Learned Counsel further relies on the ruling of Hon ble Madras High Court in CCE vs. Bharat Sanchar Nigam Limited -2017-TIOL-1487-HC-MAD-CX where also another branch/ SSA had purchased certain capital equipment for which, cenvat credit was paid by it and admittedly the capital equipment which was received by their Salem SSA was used for provisioning of telephone services by other SSAs. The issue before the High Court was whether the Salem SSA could have claimed cenvat credit in respect of capital equipment which was removed to other SSA in the same zone. The Hon ble High Court affirming the decision of this Tribunal, observed that the factum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... E - 2009 (14) STR 674 (Tri.) and in the case of CCE, Salem vs. BSNL (supra) have held that the cenvat credit on capital goods and input services have been rightly taken and cannot be denied. 2. Learned Departmental Representative for the revenue relied on the impugned order. He further reiterated the order (in para 4.4 of the order-in-original) wherein it is observed that Rule 2(l) of Cenvat Credit Rule essentially provides use of input services for providing output service. The nexus of both the input and output service is essential for availment of credit. The assessee in the present case has grossly violated the intent of legislation which cannot be treated either as procedural lapse or nullified on grounds of revenue neutralit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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