2014 (10) TMI 341 - AT - Service Tax

Appellate Tribunal overturns denial of input service credit due to procedural violation. Procedural lapses shouldn't hinder credit.

The Appellate Tribunal CESTAT NEW DELHI allowed the appeal, overturning the denial of input service credit due to procedural violation. The Tribunal ... Denial of CENVAT Credit - inputs were issued by the service provider in the name of their head office whereas the credit stands taken by their unit located at Mohali - Held that:- There is otherwise no dispute about the receipt of the service, service tax paid on the same and utilisation of the services. In a nutshell the dispute involves around the invoices being issued in the name of head office instead of being in the name & address of the appellant - procedural violation cannot result in denial of the substantive right of Cenvat credit especially when there is no dispute about the same. Accordingly, I set aside the impugned order and allow the appeal with consequential relief to the appellant - Decided in favour of assessee. The Appellate Tribunal CESTAT NEW DELHI allowed the appeal in favor of the appellant regarding denial of input service credit due to procedural violation. The Tribunal set aside the impugned order, stating that procedural violation should not result in the denial of substantive right of Cenvat credit when there is no dispute about the receipt and utilization of services.