Tribunal grants appeal, upholds CENVAT credit despite address discrepancies. Focus on service receipt and usage.

M/s Noida Cyber Park Pvt. Ltd. Versus Principal Commissioner of Central Goods & Service Tax, Noida

M/s Noida Cyber Park Pvt. Ltd. Versus Principal Commissioner of Central Goods & Service Tax, Noida - TMI Issues:
The issues in the judgment involve disallowance of CENVAT Credit, imposition of penalties, and the question of whether CENVAT credit of service tax paid on input services can be allowed when received at premises not indicated in the ST-2 certificate.

Disallowance of CENVAT Credit and Penalties:
The appeal was directed against an Order disallowing CENVAT Credit and confirming a demand of Rs.1,22,364/- along with interest under Rule 14 of the CENVAT Credit Rules, 2004. Additionally, penalties were imposed under Section 76 and Section 77 (1) (c) (iii) of the Finance Act, 1994. The case revolved around the wrong availment of CENVAT credit of service tax paid on renovation services, where the appellant's registration address did not match the service location. The appellant challenged the order, arguing that the services were received and used for renovation, which was not disputed. The Tribunal cited various cases where similar service tax situations were allowed, emphasizing that the denial of credit for a technical breach was not justified.

Allowance of CENVAT Credit on Input Services:
The main issue for consideration was whether CENVAT credit of service tax paid on input services received at premises not indicated in the ST-2 certificate could be allowed. The Tribunal held that as long as the receipt of input services by the output service provider was not in dispute, credit could not be denied solely based on the service location not matching the registered premises. Various cases were referenced to support this stance, highlighting that procedural lapses or discrepancies in addresses did not render the credit inadmissible. The Tribunal emphasized that the substantial benefit should not be denied for minor technical breaches of procedural law.

Conclusion:
In conclusion, the Tribunal allowed the appeal, setting aside the disallowance of CENVAT credit based on the established legal principles and precedents. The judgment underscored the importance of focusing on the actual receipt and utilization of services rather than technical discrepancies in addresses or documentation. The decision highlighted that procedural lapses should not hinder legitimate claims for CENVAT credit, especially when the services were duly received and accounted for by the appellant.