Cenvat credit cannot be denied for minor procedural defects when substantive entitlement is otherwise established.

Cenvat credit on services received by BSNL was held admissible despite the objection that there was no interconnectivity between the appellant unit and other BSNL service-providing units. The Tribunal treated the dispute as already covered by an earlier decision in favour of the assessee and held that minor procedural defects could not justify denial of credit where substantive entitlement was not in dispute. The Revenue's objection was therefore rejected and the credit was allowed.

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Issues: Whether Cenvat credit on services received by BSNL was admissible despite the objection that there was no interconnectivity between the appellant unit and the other BSNL service-providing units.

Analysis: The issue was found to be identical to one already decided in favour of the assessee. The Tribunal treated the dispute as a matter of procedure rather than of ineligible credit, and relied on the view that credit should not be denied for minor procedural defects when the substantive entitlement is established.

Conclusion: The credit could not be denied on the ground raised by the Revenue, and the appeal was allowed.

Ratio Decidendi: Minor procedural defects cannot justify denial of otherwise admissible Cenvat credit where the substantive entitlement is not in dispute.

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