ISD Registration: Pre-registration Invoices Eligible for Credit

The appeal challenged an order demanding cenvat credit under Rule 14 of the Cenvat Credit Rules, 2004, for invoices issued before ISD registration. The appellant contended they were eligible for credit as services were received and distributed by the head office. The Revenue argued ISD registration is mandatory for credit. The Member (Judicial) noted the dispute on availing credit on pre-registration invoices. Relying on previous tribunal judgments, the Member concluded the appellant was entitled to credit, setting aside the order demanding reversal of credit and allowing the appeal.

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Issues:
Availing Cenvat credit on invoices issued before obtaining Input Service Distributor (ISD) registration.

Analysis:
1. The appeal challenged an order demanding cenvat credit of Rs. 58,008/- under Rule 14 of the Cenvat Credit Rules, 2004, along with interest and penalty, based on invoices issued before ISD registration.

2. The appellant contended that the issue was covered by a previous tribunal decision and argued that they were eligible to avail the credit as the services were received and distributed by the head office to various factories, including the appellant's factory.

3. The Revenue argued that ISD registration is mandatory for availing Cenvat credit, citing a tribunal decision, and maintained that invoices issued before registration were ineligible for credit.

4. The Member (Judicial) noted that the dispute centered on availing credit on pre-registration invoices, highlighting that the head office obtained ISD registration after the credit was availed.

5. It was established that the appellant received the input services and was entitled to the credit, supported by previous tribunal judgments like Jindal Photo Limited and Samita Conductors Limited, which directly covered the issue.

6. The Member distinguished an interim order relied upon by the Revenue from final orders cited by the appellant, emphasizing that the final orders supported the appellant's position.

7. Relying on the precedent set by the tribunal in Jindal Photo Limited, the Member concluded that the impugned order demanding reversal of credit was incorrect, setting it aside and allowing the appeal.

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