2019 (5) TMI 252

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....n inputs, input services and capital goods. 2.1 During the course of verification of records by the audit group, it was noticed that the appellants availed input service credit provided by the Andhra Bank to their A/c No. xxxxxxxxxxxxxxx belonging to M/s. Vamshadhara Paper Mills, Srikakulam unit and not to the Gummidipoondi unit. It appeared that the credit of service tax for the services provided by the bank and used by the appellant ought to have been distributed to the appellant under Rule 7 of the CENVAT Credit Rules, 2004 by the Srikakulam unit. 2.2 A Show Cause Notice was issued proposing to disallow the credit of Rs. 9,42,035/- for the period from August 2011 to April 2014 and for recovery of the same along with interest and fo....

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....sit of the audit party, the credit availed was objected to by them stating that the Account number at Chennai does not belong to the appellant and that it shows the address of Srikakulam unit. They asked the appellant to expunge the credit and to obtain ISD Registration at their Srikakulam unit and that the credit could be taken later. Even though the appellant got a certificate from the Andhra Bank at Chennai indicating that the said account belongs to the appellant at Chennai, the audit party forced the appellant to expunge the credit saying that the credit will be disallowed if they do not adhere to the norms. The appellant therefore expunged the credit on the belief that there shall be no damage to their credit. They took ISD Registrati....

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.... the address of the Srikakulam unit. The appellant, which is situated in Chennai, can only avail the credit of service tax for the services by the Chennai Branch. As the address of the account shows the address of the appellant's Srikakulam Branch, the credit is ineligible. 5. Heard both sides 6.1 The issue is with regard to the disallowance of credit alleging that the bank account maintained by the appellant at Chennai shows the address of their Srikakulam unit. The appellant's registered office is at Srikakulam and the PAN is allotted to this Srikakulam address. Thus, as per the KYC norms, the very same address is reflected in all their bank accounts. This is very much clear from the certificate issued to them by Andhra Bank, Chenna....