TMI Blog2023 (5) TMI 196X X X X Extracts X X X X X X X X Extracts X X X X ..... S LTD., [ 2022 (4) TMI 71 - KARNATAKA HIGH COURT] and the Hon ble High Court of Karnataka after considering the decision of the Hon ble Gujarat High Court in case of COMMISSIONER OF CENTRAL EXCISE VERSUS DASHION LTD [ 2016 (2) TMI 183 - GUJARAT HIGH COURT] and the decision of the Hon ble High Court of Rajasthan in the case of COMMISSIONER CENTRAL EXCISE COMMISSIONERATE, JAIPUR VERSUS NATIONAL ENGINEERING INDUSTRIES LTD. [ 2016 (5) TMI 12 - RAJASTHAN HIGH COURT] and the Circular of Central Board of Excise and Customs dated 16.02.2018 accepting the judgement of the High Court of Gujarat and Rajasthan, has held that the availment based on invoices issued by input service distributor prior to registration under Service Tax (Registration of S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice distributor on 16.04.2009 and therefore, the appellant was not entitled to distribute credit through an invoice dated 31.03.2009 issued by Noida office and pertaining to the invoices of April 2008 to March 2009 i.e. prior to registration. 3. On these allegations, a show cause notice dated 16.04.2010 demanding service tax from the appellant was issued on the basis of audit report. 4. The appellant filed its reply to the show cause notice and after following due process, Ld. Commissioner passed the impugned order, confirming the demand mainly on the ground that the Noida office of the appellant was required to take registration as Input Service Distributor and its centralized registration of its Parwanoo Office is not sufficien ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... period has allowed the cenvat credit and the Revenue had filed appeal before the Hon ble High Court of Punjab and Haryana against the said decision but subsequently withdrew their appeal from the Hon ble High Court on monetary grounds. Here, it is relevant to reproduce the Final Order of the Tribunal dated 11.04.2017:- When these are the admitted facts that appellant has received services and service tax has been paid thereon, therefore, in terms of Rule 3 of Service Tax Rules, 2004, the appellant is entitled to avail Cenvat Credit. Whether the head office is registered as input service Distributor or not, is procedural in nature. Therefore, cenvat credit cannot be denied to the appellant. Therefore, in these circumstances, I set-aside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. The second objection of the Revenue as noted was with respect of nonregistration of the unit as input service distributor. It is true that the Government had framed Rules of 2005 for registration of input service distributors, who would have to make application to the jurisdictional Superintendent of Central Excise in terms of Rule 3 thereof. Sub-rule (2) of Rule 3 further required any provider of taxable service whose aggregate value of taxable service exceeds certain limit to make an application for registration within the time prescribed. However, there is nothing in the said Rules of 2005 or in the Rules of 2004 which would automatically and without any additional reasons disentitle an input service distributor from availing Cen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er treatment plant and other connected items and was availing benefit of Cenvat credit on the duty paid on inputs, capital goods and input services as permissible under Cenvat Credit Rules, 2004. The assessee had five manufacturing units and had its registered office at Vatva, Ahmedabad. The assessee was also providing several taxable services such as erection and commissioning, repairing and maintenance of water treatment plant, etc. 2.3 The revenue authorities, during scrutiny of the records of the assessee, noticed that it was availing the credit of service tax paid for various services by one unit for the purpose of clearance of other unit. After gathering details from the assessee, the adjudicating authority issued show cause not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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