30 August, 2015

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Cenvat Credit on Invoices Issued at Unregistered Premise Allowed

Cenvat Credit on Invoices Issued at Unregistered Premise Allowed

Hon'ble Delhi CESTAT has recently in case of M/s. Allspheres Entertainment Pvt. Ltd. Vs. CCE, Meerut [2015 (8) TMI 953 – (CESTAT DELHI)] upheld that Cenvat Credit of Service tax paid on Impugned Services by Nainital office of the Appellant on the sole ground that the invoices issued are in the name of the Appellant’s unregistered Delhi office is unjustified since the head office which is registered with the Department has discharged the Service tax liability of Delhi office. The defect in the invoices is only procedural lapse or rather a curable defect. 

 The same was held by referring to earlier Judgement of the Hon’ble High Court of Karnataka in the case of mPortal India Wireless Solutions P. Ltd. Vs. C.S.T., Bangalore [2012 (27) S.T.R. 134 (Kar.)], wherein it was held that the Credit Rules does not mandate registration with Department for availing Cenvat credit and denial of benefit on  the ground non-existent in law is unjustified.

"7. Insofar as requirement of registration with the department as a condition precedent for claiming Cenvat credit is concerned, learned counsel appearing for both parties were unable to point out any provision in the Cenvat Credit Rules which impose such restriction. In the absence of a statutory provision which prescribed that registration is mandatory and that if such a registration is not made the assessee is not entitled to the benefit of refund, the three authorities committed a serious error in rejecting the claim for refund on the ground which is not existence in law. Therefore, said finding recorded by the Tribunal as well as by the lower authorities cannot be sustained. Accordingly, it is set aside."

In the case of Manipal Advertising Services Pvt. Ltd. Vs. C.C.E., Mangalore [2010 (19) S.T.R. 506 (Tri. - Bang.)], the Hon’ble CESTAT, Bangalore held that if a person is discharging Service tax liability from his registered premises, the benefit of Cenvat credit on the Service tax paid by the service providers cannot be denied to the assessee only on the ground that the said invoices are in the name of branch offices.


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