TaxTMI 
TaxTMI 
2025 (5) TMI 56
X X X X Extracts X X X X
X X X X Extracts X X X X
....ailed on service tax paid on GTA Services, under Rule 14 of CENVAT Credit Rules, 2004, for the reason that their Head Office, who distributed the credit was not registered as an ISD. 2. Ms. Krati Singh, learned Counsel for the appellants submits that the appellants availed the GTA credit and informed the Head Office, who deposits the service tax on behalf of all the manufacturing units across the country through a consolidated challan and distribute the credit to individual units; the appellants availed the credit on the basis of e-payments receipts received from Head Office; Revenue seeks to deny the credit on the basis that the Head Office is not registered as an ISD. Learned Counsel submits that in terms of Rule 2(m) of CENVAT Credit Ru....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s that requirement of registration by Head Office as an ISD is only a procedural requirement; substantial benefit cannot be denied as held in the following cases: * Unifrax India Ltd vs. C.C.E. & S.T.- Bhavnagar 2023 (10) TMI 955- CESTAT Ahmedabad * Iffco Tokio Insurance Services Ltd. vs. Commissioner of ST, Delhi-IV, CGST, Gurugram 2025 (1) TMI 429- CESTAT Chandigarh * Bharat Sanchar Ltd. vs. The Commissioner of Central Excise and Service Tax, Chandigarh-1 2024 (1) TMI 583-CETAT Chandigarh. * Spice Digital Ltd. vs. Commissioner of Central Excise, Chandigarh 2023 (5) TMI 196- CESTAT Chandigarh * 3M India Limited vs. Commissioner of Central Excise (LTU), Bangalore 2023-TIOL-1173-CESTAT- BANG * Unite Phosphorus Ltd. vs. C.C.E. & S....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ered to receive service and to pay service tax under RCM on GTA Services; the Head Office accordingly paid the service tax in respect of all the branches and distributed the credit to the respective branches; Revenue seeks to deny the CENVAT credit on the ground that the Head Office of the appellant is not registered as an ISD. We find that learned Counsel for the appellants relies on the decision of Hon'ble High Court of Gujarat in the case of Dashion Ltd (supra); and that the Department has accepted the judgment. We find that Hon'ble High Court of Gujarat held as follows: 6. The first objection of the Department therefore that the credit from one unit was utilized for the purpose of duty liability of other unit without pro rata distribu....
X X X X Extracts X X X X
X X X X Extracts X X X X
....r opinion, rightly did not disentitle the assessee from the entire Cenvat credit availed for payment of duty. Question No. 1 therefore shall have to be answered in favour of the respondent and against the assessee. 8. Coming to the question of penalty, right from the show cause notice stage till the final disposal of the show cause notice proceedings, we find little evidence to support the allegations of willful misstatement, suppression, fraud or collusion on the part of the assessee. In fact, perusal of the show cause notice would show that the entire basis of the Revenue was wrongfully availment of the credit. Mere wrongfully availment without element of mens rea and that too for the purpose of evading payment of duty would not be suff....