Input service distributor registration is essential for Cenvat credit across units; lack of it defeats total pre-deposit waiver.

Cenvat credit on input services used across different units requires invoices raised in the name of the head office or circle office to be supported by registration of that office as an input service distributor and issuance of invoices to the concerned units. Where the circle office was admittedly not registered in that capacity, the credit did not appear to have been taken in accordance with the prescribed procedure under the Cenvat Credit Rules, 2004. The applicant therefore failed to establish a prima facie case for total waiver of pre-deposit, and only partial waiver was granted with stay conditional on compliance.

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Issues: Whether the applicant was entitled to total waiver of pre-deposit in a dispute concerning Cenvat credit availed on invoices raised in the name of the Head Office or Circle Office, where the Circle Office was not registered as an input service distributor.

Analysis: For Cenvat credit on input services used in different units, invoices raised in the name of the Head Office or Circle Office and paid from that office require registration of the Head Office or Circle Office as an input service distributor and issuance of invoices to the concerned units. Since the Circle Office was admittedly not so registered, the credit did not appear to have been availed in accordance with the prescribed procedure under the Cenvat Credit Rules, 2004. On that basis, the applicant did not establish a prima facie case for total waiver of pre-deposit.

Conclusion: Total waiver was declined and partial pre-deposit was directed, with waiver and stay to operate only on compliance.

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