2015 (10) TMI 1147 - AT - Central Excise

Appellant Granted Cenvat Credit for Various Expenses under Rule 9

The Tribunal allowed the appellant's claim for Cenvat Credit on various disputed expenses, including invoice discrepancies, telephone bills, service tax ... Cenvat Credit - Rule 9 of the Cenvat Credit Rules, 2004 - eligibility of credit despite invoice address mismatch - credit for services used by officials at residential premises - credit for services related to job-work premises upon production of evidence - credit for services used in dismantling and shifting of plant and machinery - credit for professional services availed in course of businessCenvat Credit - eligibility of credit despite invoice address mismatch - Rule 9 of the Cenvat Credit Rules, 2004 - Cenvat credit denied because invoices bore the appellant's previous address. - HELD THAT: - The Tribunal found that it was not disputed that the services represented by the invoices were utilised by the appellant. Applying Rule 9 of the Cenvat Credit Rules, 2004, the mere fact that the invoices recorded a previous address did not disentitle the appellant to credit where the services had been used by it. The denial on the ground of invoice address mismatch was therefore not sustainable and credit was allowed. [Paras 3]Cenvat credit of Rs. 35,634/- allowed; denial for invoice address mismatch set aside.Cenvat Credit - credit for services used by officials at residential premises - Rule 9 of the Cenvat Credit Rules, 2004 - Cenvat credit denied for telephone/mobile bills in the name of the head office and used by officials at their residences. - HELD THAT: - The Tribunal recorded that the bills related to mobile telephony used by the appellant's officials. Under Rule 9, where services have been used by the appellant in the course of business, credit is permissible. The restriction in the rent-deed regarding commercial activity at the residential premises did not negate that the mobile services were utilised by the appellant's personnel. Accordingly, the appellant was entitled to take Cenvat credit on those telephone/mobile bills. [Paras 4]Cenvat credit of Rs. 2,414/- allowed; denial on the ground of billing in head office name and residential use set aside.Cenvat Credit - credit for services related to job-work premises upon production of evidence - Cenvat credit denied on account that no job-work agreement was produced for premises where service tax on rent was paid. - HELD THAT: - The Tribunal observed that the appellant had produced the job-work agreement, and the revenue had failed to demonstrate with cogent evidence that the premises were not used for the appellant's job-working activities. Absent such contrary proof, denial of credit on the basis of alleged non-availability of a job-work agreement was unwarranted. The appellant therefore correctly availed credit. [Paras 5]Cenvat credit of Rs. 3,38,880/- allowed; denial for alleged non-production of job-work agreement set aside.Cenvat Credit - credit for services used in dismantling and shifting of plant and machinery - Cenvat credit denied for service tax paid on dismantling of old building. - HELD THAT: - The Tribunal found that the dismantling services were utilised for dismantling the appellant's plant and machinery at its premises and for shifting to new premises, and that such services were an integral part of the appellant's business activity. On that basis, the appellant was entitled to Cenvat credit for the dismantling services. [Paras 6]Cenvat credit of Rs. 8,842/- allowed; denial for dismantling services set aside.Cenvat Credit - professional services availed in course of business - Cenvat credit denied for service tax paid on Chartered Accountant services because invoices were in the name of the old office. - HELD THAT: - The Tribunal noted that the Chartered Accountant services were availed in the course of the appellant's business activity. The form or name on the invoice (old office) did not negate that the services were used in the appellant's business. Therefore, the appellant was entitled to take Cenvat credit for the professional services. [Paras 7]Cenvat credit of Rs. 21,630/- allowed; denial for invoice being in old office name set aside.Final Conclusion: All impugned denials of Cenvat credit were found unsustainable; the appeals are allowed and the credits admitted by the appellant are to be granted, with consequential relief. Issues:1. Disallowance of Cenvat Credit on the grounds of invoice discrepancies2. Disallowance of Cenvat Credit on telephone bills in the name of head office3. Disallowance of Cenvat Credit on service tax paid for job worker premises4. Disallowance of Cenvat Credit on service tax paid for dismantling of old building5. Disallowance of Cenvat Credit on Chartered Accountant servicesAnalysis:1. The first issue pertains to the disallowance of Cenvat Credit amounting to &8377; 35,634/- due to invoice discrepancies. The Tribunal found that the services covered by these invoices were indeed utilized by the appellant. As per Rule 9 of the Cenvat Credit Rules 2004, the appellant was deemed entitled to claim Cenvat Credit for these services, leading to the allowance of the credit.2. The second issue involved the disallowance of Cenvat Credit worth &8377; 2414/- on telephone bills registered in the name of the head office. Despite the bills being utilized by officials at their residences, the Tribunal noted that these bills were for mobile services used by the appellant's officials. Consequently, in accordance with Rule 9 of the Cenvat Credit Rules 2004, the appellant was deemed eligible to claim Cenvat Credit on these expenses.3. The third issue addressed the disallowance of Cenvat Credit amounting to &8377; 3,38,880/- on service tax paid for premises where job working activities were carried out. The appellant presented the job work agreement, refuting the revenue's claim of non-usage of the premises for job working activities. The Tribunal, finding no substantial evidence to the contrary, ruled in favor of the appellant, allowing the Cenvat Credit.4. The fourth issue concerned the disallowance of Cenvat Credit totaling &8377; 8842/- for the dismantling of an old building. The Tribunal acknowledged that these services were utilized by the appellant for dismantling plant and machinery, which were then relocated to a new premises, constituting an integral part of their operations. Consequently, the Tribunal held that the appellant was justified in claiming Cenvat Credit for these expenses.5. Lastly, the disallowance of Cenvat Credit worth &8377; 21,630/- on Chartered Accountant services was addressed. The Tribunal recognized that these services were availed by the appellant in the course of their business activities, leading to the conclusion that the appellant was entitled to claim Cenvat Credit for these services. The Tribunal overturned the lower authorities' decision and allowed the appeals with consequential relief.