Cenvat credit on input services requires verification of actual availment before denying credit for head office invoices.

Denial of Cenvat credit on input services invoiced to the head office could not be sustained without examining whether the services were actually availed by the appellant unit or any other unit. The record showed that neither the adjudicating authority nor the appellate authority verified the place of actual consumption of the services, which was essential to determine eligibility to credit. In the absence of that factual enquiry, the matter could not be finally decided on the existing record. The impugned order was set aside and the matter remanded for de novo consideration after granting an opportunity of hearing.

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Issues: Whether denial of cenvat credit on the ground that the invoices for input services were issued in the name of the head office, and without examining whether the input services were actually availed by the appellant unit or any other unit, could be sustained.

Analysis: The record showed that neither the adjudicating authority nor the appellate authority examined the invoices to ascertain where the corresponding input services were actually availed. That factual enquiry was necessary for a correct decision on entitlement to credit. In the absence of such scrutiny, the matter could not be finally decided on the existing record.

Conclusion: The impugned order was set aside and the matter was remanded to the adjudicating authority for de novo consideration after granting an opportunity of hearing.

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