Cenvat credit requires input service distributor registration when services are received by a depot, not the manufacturing unit.

Cenvat credit on services received by a depot cannot be claimed directly by a manufacturing unit where the depot is the recipient of the taxable service and is not registered as an input service distributor. The credit distribution mechanism under the rules must be followed, and credit cannot be taken by the Kolkata unit on the basis of service tax paid for services availed at the Jaipur depot. On that footing, the claimed credit was not admissible and its denial was in law.

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Issues: Whether the manufacturing unit at Kolkata was entitled to Cenvat credit of service tax paid on services received by the depot at Jaipur, when the depot was not registered as an input service distributor.

Analysis: Credit was claimed by the Kolkata unit on the basis of service tax paid for services received by the Jaipur depot. The relevant rule required distribution of credit through an input service distributor mechanism, and the recipient of the taxable service was the depot, not the manufacturing unit claiming credit. As the depot was not registered as an input service distributor, the credit could not be taken by the Kolkata unit on that basis.

Conclusion: The appellant was not entitled to the credit claimed, and the denial of credit was in law.

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