2017 (5) TMI 670

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.... [Order per: Sulekha Beevi, C.S.] 1. The above appeal is filed against the order passed by Commissioner (Appeals) who set aside the demand interest and penalty. 2. The respondents are engaged in manufacture of Rigid and Flexible PVC Film and sheets. A Show Cause Notice was issued to them alleging irregular availment of credit on service tax during the period (November, 2010 on two invoices date....

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....During the period covered the show cause notice, the respondent obtained ISD registration only after issuing the show cause notice. That therefore, the credit distributed and availed by the respondent prior to obtaining ISD registration is irregular and the Commissioner (Appeals) has erred in allowing the credit. Further that the documents furnished by the respondents for availing credit did not r....

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....n realising the necessity. The said Irregularity if any is only procedural infirmity and that appellant cannot be denied substantive benefit for procedural lapse, if any. With regard to the allegation that they did not mention the category of services in the documents, the Ld. Counsel submitted that along with the documents the respondent had furnished a detailed list of services as well as amount....

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.... Failure to obtain ISD registration can be only a procedural lapse which has been rectified by the appellant on receiving the show cause notice. In my view, the commissioner (Appeals) has rightly considered the same as only a procedural lapse and condoned the some for the reason that there is no doubt that the respondent has paid the service tax on input services which have been distributed by the....