TaxTMI 
TaxTMI 
2022 (4) TMI 71
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....Tax Appellate Tribunal, South Zonal Bench, Bengaluru ['CESTAT' for short]. 2. The appeal was admitted by this Court on 25.07.2017 to consider the following substantial questions of law: "1. Whether on the facts and in the circumstances of the case Tribunal was correct in overlooking the statutory provisions enacted by parliament which would amount to rewriting of the provision and recorded perverse finding? 2. Whether on the facts and in the circumstances the Tribunal was right in holding that CENVAT credit is eligible to be availed on invoices/debit notes issued by 'Input Service Distributor' [ISD] prior to their registration under the Service Tax [Registration of Special Category of Persons] Rules, 2005 without proper apprecia....
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....he issue of notification No.27/2005-ST dated 07.06.2005 it was made mandatory for registration of ISD and they alone would be entitled to avail CENVAT Credit of input services. Based on the said notification, Department has held that the respondent - assessee was not entitled to avail the CENVAT credit on the invoices/debit notes issued by the head office during March, July and August 2006. The CESTAT without appreciating this aspect of the head office having registered under the Rules as ISD on 21.09.2006, proceeded to give reliefs to the assessee. Accordingly, seeks to answer the substantial questions of law in favour of the Revenue allowing the appeal. 6. Learned Senior Counsel representing the respondent has placed reliance on the judg....
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....ramed Rules of 2005 for registration of input service distributors, who would have to make application to the jurisdictional Superintendent of Central Excise in terms of Rule 3 thereof. Sub-rule (2) of Rule 3 further required any provider of taxable service whose aggregate value of taxable service exceeds certain limit to make an application for registration within the time prescribed. However, there is nothing in the said Rules of 2005 or in the Rules of 2004 which would automatically and without any additional reasons disentitle an input service distributor from availing Cenvat credit unless and until such registration was applied and granted. It was in this background that the Tribunal viewed the requirement as curable. Particularly wh....
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....es, 2004. The assessee had five manufacturing units and had its registered office at Vatva, Ahmedabad. The assessee was also providing several taxable services such as erection and commissioning, repairing and maintenance of water treatment plant, etc. 2.3 The revenue authorities, during scrutiny of the records of the assessee, noticed that it was availing the credit of service tax paid for various services by one unit for the purpose of clearance of other unit. After gathering details from the assessee, the adjudicating authority issued show cause notice calling upon the assessee as to why the CENVAT credit of service tax on input service should not be recovered with interest and penalties. In the show cause notice itself, the adjudicati....