TMI Blog2023 (9) TMI 286X X X X Extracts X X X X X X X X Extracts X X X X ..... incurred upto the place of removal has already been included in the assessable value on which duty has been paid. It is also not in dispute that the said input services have been received by the depots and appropriate service tax has been paid. Under such circumstances, denial of CENVAT credit merely on the ground of non-registration/delay in registration of the depots is not sustainable. In the case of THE COMMISSIONER OF CENTRAL EXCISE, O/O THE COMMISSIONER OF CENTRAL EXCISE, CUSTOMS SERVICE TAX VERSUS M/S. PRICOL LTD. [ 2021 (2) TMI 495 - MADRAS HIGH COURT ], it has been held Credit availed and distributed by respondent prior to getting registered as an input service distributor not deniable. Central Board of Excise and Cu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llant and demanded interest and equal amount of duty as penalty under Section 11AC of the Central Excise Act, 1944 read with Rule 15(2) of the CENVAT Credit Rules, 2004. The Cenvat credit in dispute in this case was with respect to the credit distributed by various depots of the Appellant spread across the country, on the ground that the said depots were either not having the Service Tax registrations at all, or the credit has been distributed prior to obtaining the registration. Aggrieved against the impugned order, the Appellant has filed the present appeal. 2. In their submissions, the Appellant stated that it is a settled position that registration of the depots is not a pre-requisite for availment of CENVAT credit. They stated that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 63/2/2018-CX dated 16.02.2018 issued by Central Board of Excise and Customs , wherein the various decisions of the High Court have been accepted by the department with an objective to reduce litigation and dispose of the cases on similar questions of law or identical case on facts pending with the department. In the said circular, the Board has accepted the decision of Hon ble High Court of Gujarat in the matter of Commissioner of Central Excise vs Dashion Ltd [2016 (41) S.T.R. 884 (Guj.)], wherein the Hon ble High Court dismissed the department s appeal holding that non-registration of ISD is only a procedural irregularity for which substantial benefit of CENVAT credit cannot be denied when all the necessary records have been maintained by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d on by their depots without registration. 11. It is an undisputed fact that services received by the depots are eligible input service to the Appellant, as the depots are their place of removal and all the expenditure incurred upto the place of removal has already been included in the assessable value on which duty has been paid. It is also not in dispute that the said input services have been received by the depots and appropriate service tax has been paid. Under such circumstances, denial of CENVAT credit merely on the ground of non-registration/delay in registration of the depots is not sustainable. We observe that this view has been held in various judicial pronouncements. 12. In the case of Commissioner of Central Excise, Coimba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was in this background that the Tribunal viewed the requirement as curable 14. In the case of Lona Industries Ltd -vs- Commissioner of Central Excise, Raigad, [2016 (42) S.T.R. 362 (Tri. - Mumbai) , the Tribunal has held as under: . The Cenvat Credit Rules do not prohibit availment of Cenvat credit in respect of inputs/input services which have been received prior to registration. The Cenvat Credit Rules contain 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 . 15. In the case of Jai Balaji Industries Ltd. (Unit IV) vs. CCE, Bolpur [2022 (58) GSTL 361 (Tri. Kol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rings reported in 2019 (369) E.L.T. 631 (All.) has held that the rules relating to Input Service Distributor are purely machinery provisions and directory in nature. 16. We observe that Central Board of Excise and Customs has issued Circular No. 1063/2/2018-CX dated 16.02.2018, wherein the various decisions of the High Court have been accepted with an objective to reduce litigation and dispose of the cases on similar questions of law or identical case on facts pending with the department. In the said circular, the Board has accepted the decision of Hon ble High Court of Gujarat in the matter of Commissioner of Central Excise vs Dashion Ltd [2016 (41) S.T.R. 884 (Guj.)], wherein the Hon ble High Court dismissed the department s appea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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