Cenvat of different sites

[samir agrawal]

One company (one PAN number) had 2 separate sites of rendering service with 2 separate service tax registrations. The company has utilised cenvat of inputs/capital goods of bills addressed to one unit in the other unit.

Any case law which allows this?

[Vijay kumar]

Is it service tax matter?

[KASTURI SETHI]

What is the period involved ? 

[samir agrawal]

Period involved is 2007-2011. It is a service tax matter

[KASTURI SETHI]

Can you elaborate your query with more facts ?  That will help me in tracing out most relevant case law in favour of the Service Tax assessee. 

[Shilpi Jain]

Under service tax - cenvat credit provisions, the tribunals have been very liberal in giving the cenvat credit benefit and situations like these where one unit has taken credit since the service belongs to this unit and only address was wrong on the invoice, credit was still allowed.

This should not be a difficult case to win until you are able to prove that only one unit has taken the credit

[Shilpi Jain]

Recently under GST also this kind of situation, credit was allowed. Aberdare Technologies P Ltd. - 2025 (4) TMI 101 - SC ORDER.

This is a Supreme Court decision.

[Shilpi Jain]

In your case if its a litigation that is going on, suggest that you hire a good professional who can handle these kind of cases and having good experience. All the other aspects will be taken care of by this professional. 

[KASTURI SETHI]

The querist is concerned with specific case law only.  It is a technical lapse and no revenue loss is involved. Case law on the ground of non-registration as ISD is  available  and the same has been accepted by the department. 

[samir agrawal]

The case law Aberdare Technologies P Ltd. - 2025 (4) TMI 101 - SC ORDER is on rectification of mistake and not on cenvat.

[Shilpi Jain]

Abredare for sure is on rectification of mistake in returns, and it is under GST which has more strict provisions relating to ITC. When under GST itself they have given favourable decision to avail ITC, CENVAT where many favourable decisions are given, the case must be easier.

My reason for giving ref to Abredare was only limited to the above.

[michael lebane]

hello, can someone help me?

[KASTURI SETHI]

Both units (despite having one PAN) are distinct persons in the eyes of Central Excise Act and Finance Act (Service Tax law). Both have separate legal entity. No benefit can be taken on the ground that both have one PAN. Income Tax Act and Central Excise Act/Finance Act,1994 (Service Tax law) operate independently. Direct tax and indirect tax cannot be intermingled. 

You cannot deny the above legal facts.

AI Summary

Cenvat credit allocation: clerical invoice errors may not bar credit if the benefiting service unit can prove entitlement. Cenvat credit may be allowed where one registered service unit uses inputs or capital goods invoiced to another unit if the benefiting unit can show the credit relates to its services and the invoice address error was clerical; tribunals have been liberal and GST rectification decisions have been cited. However, separate service registrations create distinct taxable persons despite a common PAN, and this distinction can constrain reliance on PAN identity; evidence and professional representation are important, and non-registration as an ISD has been relied on in some cases.