The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal ( CESTAT ) observed that the Input Service Distributors ( ISD ) invoice is proper document for taking cenvat credit under Rule 9 of the Cenvat Credit Rules, 2004 ( CCR ).
It was alleged that the appellant availing cenvat credit on input service credit on different input services during the impugned period was not eligible for taking cenvat credit as these services are known as the activity of manufacture by the appellant. In these set of facts, various periodical show-cause notices were issued to the appellants to deny the cenvat credit on input service credit availed by the appellant on the strength of invoices issued by the input service distributor i.e. Head Office.
The counsel for the appellant submitted that the eligibility of input service i.e. where the input service is covered by the definition of “input service” is to be seen by ISD only and the appellant have no role as they are receiving invoices issued by ISD showing their proportionate cenvat credit eligible for cenvat credit issued by ISD. It is further submitted that the jurisdictional authority is only to say whether the documents on the basis that the appellant has taken the cenvat credit is correct or proper.
On the other hand, the A.R. for the Revenue opposed the contention of the Counsel for the appellants and submitted that as alleged against the appellants that the services on which ISD distributed the input service credit to the appellants are not input services, therefore, the appellants are not entitled to take the cenvat credit and with regard to the distribution by ISD.
A Two-Member Bench comprising Ashok Jindal, Judicial Member and K Anpazhakan, Technical Member observed that “Admittedly, in this case, the appellants are having different manufacturing unit and their Head Office is located in Pune and and is registered as the Input Service Distributors ( ISD ). The Head Office distributed the input service credit to their manufacturing unit in proportionate of their clearance during the particular period. It cannot be said that on which service, the appellant has entitled to take the cenvat credit as the same cannot be available with the appellants. It is proper, the invoices issued by ISD is to be taken into consideration.”
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
