Cenvat credit on input services cannot be denied for off-premises receipt or consolidated vouchers backed by invoices.

Cenvat credit on input services cannot be denied merely because the services were not received within the factory premises where manufacturing was carried on. The Tribunal also held that credit was not invalid merely because it was reflected through consolidated vouchers, where the underlying invoices existed and supported the claim. On both objections, the denial of credit was unsustainable. The disallowance of Cenvat credit and the penalty were therefore set aside, and the appeal was allowed.

---

---

Issues: (i) Whether Cenvat credit on input service tax could be denied on the ground that the services were not received in the factory premises where manufacturing activity was carried on; (ii) whether credit could be disallowed on the ground that the credit was taken on assessee's vouchers said to be ineligible documents.

Analysis: The Tribunal held that there was no requirement in law that credit on service tax paid on input services could be taken only if the services were received within the factory premises. The denial on that ground was therefore unsustainable. On the second ground, the Tribunal found from the invoices that credit had been taken on the strength of invoices and that the assessee's vouchers were only consolidated statements prepared with reference to the invoices of each branch. Since the underlying invoices existed, the objection that the vouchers were not eligible documents could not be sustained.

Conclusion: Both grounds for denial of Cenvat credit failed and the assessee was entitled to the credit claimed.

Final Conclusion: The disallowance of Cenvat credit and the penalty were set aside and the appeal was allowed.

Ratio Decidendi: Cenvat credit on input services cannot be denied merely because the services were not received in the factory premises, and consolidated vouchers do not invalidate credit where the credit is supported by underlying invoices.

---