Tribunal allows appeal, grants CENVAT credit for input services at External Warehouse

The Tribunal allowed the appeal and set aside the Commissioner's Order-in-Original, favoring the Appellant in the dispute over the denial of CENVAT credit on input services received at an External Warehouse with a separate registration certificate. The Tribunal aligned with previous decisions and the Order-in-Appeal for the subsequent period, acknowledging the eligibility of CENVAT credit for input services not received at the factory but at the External Warehouse.

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Issues:
Denial of CENVAT credit on input services not received at the factory but at External Warehouse with separate registration certificate.

Analysis:
The Appellant, a manufacturer of Turbo Charger Engines, faced denial of CENVAT credit by the Commissioner of Central Excise & Service Tax, Pune-I on input services not received at the factory but at an External Warehouse with a separate registration certificate. The Appellant's amalgamation with the Warehouse was sanctioned by the Bombay High Court, and all service providers invoiced the Appellant post-integration. The Audit report did not suggest non-reversal of CENVAT credit, but a show-cause notice was issued alleging non-receipt of input services at the factory. The Appellant argued that the denial was erroneous, citing Tribunal decisions and the reversal of credit proportionate to trading activity. Notably, the Department accepted findings of previous Orders-in-Appeal, acknowledging the eligibility of CENVAT credit for input services. The Appellant referenced various judicial decisions and sought to set aside the Commissioner's order.

The Authorized Representative for the Respondent-Department supported the Commissioner's order, emphasizing the rationale behind the decisions on the admissibility of CENVAT credits for subsequent periods. The Tribunal reviewed the case record, documents, and precedent set by previous decisions. Following the judicial precedent and in alignment with the findings in the Order-in-Appeal for the subsequent period, the Tribunal allowed the appeal and set aside the Commissioner's Order-in-Original dated 07.12.2015. This decision was pronounced in open court, ultimately favoring the Appellant in the dispute over the denial of CENVAT credit on input services received at an External Warehouse.

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