Tribunal Upholds Appeals Decision, Supports Post-Amalgamation Credit Distribution

The Tribunal upheld the Commissioner (Appeals) decision, maintaining the order-in-appeal and dismissing the Revenue's appeal. The post-amalgamation legal position supported the credit availed by the appellant, justifying the credit distribution by the head office and setting aside the penalty imposed by the original adjudicating authority.

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Issues:
Dispute over cenvat credit availed by assessee of service tax distributed by head office pre-amalgamation period.

Analysis:
The Revenue appealed against the order-in-appeal regarding cenvat credit availed by the assessee pre-amalgamation of Ghari Industries. The dispute arose as the service tax credit was distributed by the head office, registered as an input service distributor, pertaining to services paid by Ghari Industries before amalgamation. The Commissioner (Appeals) allowed the credit, leading to the Revenue's appeal.

The Commissioner (Appeals) detailed that the credit distribution was in compliance with regulations. The show cause notice's allegation lacked evidence, and the appellant clarified that all credit was distributed by Ghari Industries before amalgamation. The High Court's order permitted amalgamation from 01.04.06, deeming activities post-amalgamation as carried out by the transferee company. The credit distributed post-amalgamation was for services deemed availed by the appellants, justifying the credit availed based on the head office's invoice.

The Tribunal upheld the Commissioner (Appeals) decision, stating no reason to interfere with the detailed findings. The order-in-appeal was maintained, dismissing the Revenue's appeal. The legal position post-amalgamation supported the credit availed by the appellant, leading to the allowance of the credit and setting aside the penalty imposed by the original adjudicating authority.

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