2015 (12) TMI 1006

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....S.O. dyes and pigments falling under Chapter SH No. 3204 of Central Excise Tariff Act, 1985. They are availing cenvat credit for duty paid inputs and also input services as per the provisions of the Cenvat Credit Rules, 2004. On the basis of audit objections, show cause notice dated 20.7.2012 was issued questioning the availment of input service credit on invoices issued by their head office as Input Service Distributor (ISD) for services received during financial year 2005 to 2008 for which service tax was paid at the relevant time only. The head office of the appellant was registered with the jurisdictional excise authorities as ISD vide certificate dated 25.2.2008 issued to them and thereafter invoices were issued for duty paid input ser....

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.... shall be allowed credit of duty paid on inputs and capital goods as well as service tax paid on input services received by him and in the present case there is no dispute that the input services in question have been received by the appellant. He also referred to Rule 9(1) which specifies the documents on the basis of which cenvat credit can be taken by the manufacturer or service provider or ISD as the case may be. He also submitted that in the present case, the appellant has availed the credit in dispute on the basis of original invoices raised by the ISD in terms of the invoices raised on ISD by the service providers. He placed reliance on the decision of the Hon'ble Karnataka High Court in the case of mPortal Wireless Solutions vs ....

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....the case of Imagination Technologies India Ltd. vs. CCE, Pune-III reported in 2011 (23) STR 661. After examining the legal provisions under the Cenvat Credit Rules, 2004, the Tribunal has held that there is no provision in the Cenvat Credit Rules specifically prohibiting availment of cenvat credit in respect of inputs/input services which have been received prior to their registration as an output service provider. The Tribunal in the case of WNS Global Services Pvt. Ltd. vs. CCE, Nashik reported in 2012 (32) STR 657 held that credit can be availed if nexus between input service and output services has been established. The head office being not registered as ISD will not disentitle the appellant from availing the credit of service tax paid....