TaxTMI 
TaxTMI 
2017 (5) TMI 665
X X X X Extracts X X X X
X X X X Extracts X X X X
....ration number is not mentioned. Being aggrieved by the impugned order, appellant is before this Tribunal. 2. Shri. V.S. Nankani, Ld. Sr. Counsel with Shri. Prithviraj Chaudhari, Ld. Advocate for the Appellant made following submission. (a) As regard the non obtaining the input service distribution registration at Head Office, he submits that Ld. Commissioner has gravely erred in denying the Cenvat credit of the service tax paid on the input service for which credit has been utilized for payment of excise duty on goods cleared from the factory. He submits that appellant have only one factory therefore where the invoice is raised in the name of the head office that does not make any difference as the input service was used for the manufacturing unit of the appellant. Merely because at the relevant time ISD registration was not obtained by the appellant, cenvat credit could not have been denied. ISD registration is primarily required for the purpose of distribution of services when the assesse has more than one manufacturing unit which is not the case here. He alternatively submits that even though the ISD registration was not obtained, it is only a procedural lapse, fo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on a certified statement of the proportionate amount of Cenvat credit liabel to be reversed based on the percentage of trading turnover. (f) As regard the denial of Cenvat credit on the ground that service provider registration number is not mentioned on the invoice on the strength of which Cenvat credit was availed, he submits that except service tax registration, all other information is appearing on the invoice. Only due to the reason that service provider's registration number is not appearing on the invoice does not prove that service tax was not discharged by the service provider. This is only procedural lapse for that reason cenvat credit cannot be denied. He further submits that the adjudicating authority has not given any reason for denial of credit on this count therefore it appears that there is no serious lapse on this count. Accordingly, Cenvat credit should not have been disallowed on this ground. He further submits that only for procedural infraction such as non mention of registration number on the invoice of the service provider Cenvat credit cannot be denied. This has been held in following judgments; (i) Formika India Vs. Collector of Centra....
X X X X Extracts X X X X
X X X X Extracts X X X X
....registration, I am of the view that ISD registration is only procedural requirement for the purpose of distributing the Cenvat credit to the various units of the assessee. In the procedure of input service distributors there is no fresh payment of service tax involved, it is only for the purpose of the service tax which was already paid in respect of the services provided by the service provider is passed on to the respective units, therefore the procedure of ISD is nothing but only procedural requirement. This tribunal time and again has held that merely because ISD registration is not obtained Cenvat credit cannot be denied to the assessee's manufacturing unit or to the output service provider. This has been considered by Hon'ble Gujarat High Court in the Doshion Ltd (supra) wherein it was held as under: 7. In the facts and circumstances of the case and in view of the fact that entire demand has been set-aside except for a small amount, it is felt that no penalty on the employees and the Director is warranted. Accordingly, appeals filed by the Director, General Manager and Authorised Signatory are allowed. This similar issue was also considered in the case o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ct from the statement of Shri Chandresh C. Shah, as explained that above Cenvat credit available to them, 20% of service tax payable only was paid and balance was paid in cash. In fact, proper distribution would have enabled them to utilize full credit. It would show that the exercise is totally Revenue neutral and no loss has been caused to the Revenue (in fact Revenue has gained). In the absence of any legal requirement to avail credit based on the services received during the relevant time and in the light of the decision cited by the learned counsel, the procedural irregularity has to be ignored and the demand confirmed has to be set aside on this ground. In the result, demand for Cenvat credit of Rs. 1,07,07,142/- with interest and penalty equal to the same imposed under Section 11AC of Central Excise Act, 1944 are set aside. In Modern Petrofils v. Commissioner of Central Excise, Vadodara - 2010 (20) S.T.R. 627 (Tri.-Ahmd.) case, it was held as under: 4. I have considered the submissions made by both the sides. I find that Commissioner has rightly followed the decision of this Tribunal in the case of DNH Spinners. Even though the appellants have multiple divi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....envat credit availed by the head office as ISD proportionately to various units (the provision is brought in the statute from 17-5-2012), I am convinced that the ratio of the decisions as cited herein above as the issue is in favour of the assessee. Accordingly, I set aside the impugned order and allow the appeal with the consequential relief, if any. As regard the issue that invoices are in the name of the head office the credit has been allowed by this Tribunal in case of DNH Spinners(supra) 3. The Revenue in their grounds has raised only technical grounds that the documents were not in the name of the assessee's factory situated at Silvassa but the same were issued in the name of the head office of the assessee situated at Mumbai. However, I find that there is otherwise no dispute about the input services received by the assessee. The substantive benefit cannot be denied on the procedural grounds. I do not find any infirmity in the view adopted by Commissioner (Appeals) and accordingly reject the appeal filed by the Revenue. The same issue has been further considered by this Tribunal in case of Bloom Dekor Ltd(Supra) 4. After considering t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....cations, we find that overall activity of the appellant is manufacturing of goods in the appellant's factory, storage thereof and sale of the said goods either from the factory or from the different storage points and branches. Therefore even though the services were received at their different location, the cenvat credit is allowable on the ground that all the locations are working in or in relation to storages and or sale of the goods manufactured by the appellant unit, therefore as per the definition of input service existed during the impugned period, the activities related to the business is also defined as input service therefore for this reason Cenvat credit can also not be denied. This has got support from the judgment of Hon'ble Bombay High Court in case of Coca Cola India Ltd and Ultratech Cement (Supra). 7. As regard the trading activity, Ld. Counsel has conceded that they are prepared to reverse the cenvat credit proportionate to percentage of trading turnover. Therefore we held that Cenvat credit proportionate to the percentage of trading turnover, as per the satisfaction of the adjudicating authority is recoverable from the appellant. However, we do not propose....