Centralized registration not mandatory for Cenvat Credit eligibility

The appeal was allowed as the Tribunal held that the absence of centralized registration did not automatically disentitle the appellant's Steel unit from availing Cenvat Credit of Service Tax paid on GTA service by their other unit. The Tribunal emphasized the importance of maintaining full records and considered procedural irregularities as curable, especially when records were maintained. The decision underscored that lacking centralized registration should not bar an entity from availing Cenvat credit if all other conditions were met. Consequently, the impugned order was set aside, and the appeal was allowed with any consequential relief as per the law.

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Issues Involved:
- Entitlement to Cenvat Credit of Service Tax paid on GTA service by one unit for another unit without centralized registration or permission from the Department.

Analysis:
The appeal was filed against the order passed by the Commissioner of Central Excise, Customs, and Service Tax (Appeals) - RAJKOT, regarding the entitlement of the appellant's Steel unit to Cenvat Credit of Service Tax paid on GTA service by their other unit. The main contention was that due to the lack of centralized registration or permission from the Department, the appellant might not be eligible to avail such credit. The issue revolved around the interpretation of the Rules of 2005 for registration of input service distributors and whether the absence of such registration automatically disentitles an entity from availing Cenvat credit. The judgment referred to a case where the Tribunal viewed the requirement as curable, especially when full records were maintained, and any irregularity was deemed procedural. The Tribunal's decision in the appellant's own case was also cited, where the appeal was allowed.

The judgment highlighted the importance of maintaining full records and the availability of such records for the Revenue to verify correctness. It emphasized that procedural irregularities should not automatically disentitle an entity from availing Cenvat credit, especially when the irregularity is curable. The Tribunal's decision in the appellant's case, along with the reference to the judgment of the Hon'ble Gujarat High Court, supported the view that the absence of centralized registration should not bar an entity from availing Cenvat credit if all other requirements are met. Ultimately, the impugned order was set aside, and the appeal was allowed with consequential relief, if any, as per the law.

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