Appeal success: CENVAT credit allowed for service tax on commissions. Large Tax Payer Unit (LTU) benefits confirmed.

The Tribunal allowed the appeal, setting aside the denial of CENVAT credit to the Bangalore unit for service tax paid on commissions. It was established that as a Large Tax Payer Unit (LTU), credit transfer between units was permissible, and ISD registration should not hinder credit distribution. The decision on 10-07-2015 favored the appellant, emphasizing the entitlement to credit transfer under LTU registration and providing consequential relief.

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Issues:
1. Denial of CENVAT credit to Bangalore unit for service tax paid on commissions.
2. Dispute regarding ISD registration and credit distribution between Hubli and Bangalore units.
3. Applicability of procedural conditions for availing CENVAT credit.
4. Transfer of credit between units under LTU registration.

Analysis:
1. The case involved the denial of CENVAT credit to the appellant's Bangalore unit for service tax paid on commissions without ISD registration. The Commissioner had denied the credit and imposed a penalty, prompting the appeal.

2. The appellant contended that as a Large Tax Payer Unit (LTU), they could transfer credit between units or distribute it through ISD registration. The dispute centered around whether the Bangalore unit could avail the credit without ISD registration and if the credit from the Hubli plant could be utilized without proper distribution.

3. The Tribunal examined previous decisions, emphasizing that ISD registration is a procedural condition that should not lead to the denial of substantive benefits. Citing cases like Doshion Ltd. Vs. CCE, Ahmedabad and others, it was established that credit distribution among units, even if services were not directly received, is permissible.

4. Considering that both Bangalore and Hubli units belonged to the same appellant, the Tribunal concluded that denial of credit to the Bangalore unit was unjustified. Additionally, under LTU registration, the transfer of credit between units was permissible, further supporting the appellant's claim for credit availability.

5. Ultimately, the Tribunal set aside the impugned order, allowing the appeal and providing consequential relief to the appellant. The decision highlighted the permissibility of credit transfer between units under LTU registration, reinforcing the appellant's entitlement to the credit.

6. As the appeal was allowed on merits, the issue of limitation was not addressed, and the decision was pronounced on 10-07-2015, in favor of the appellant.

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