CENVAT Credit Allowable Even If Premises of Service Exported are Not Registered u/r 5 of CENVAT Credit Rules: CESTAT [Read Order]

The Chennai bench of the Customs, Excise, And Service Tax Appellate Tribunal (CESTAT) held that the CENVAT credit should be allowed even if the premises of the service exported are not registered under rule 5 of the CENVAT credit rules, 2004. 

Aricent Technologies (Holdings) Limited, the respondent-assessee registered with the Department under Management Consultancy Service (MCS), Information Technology and Software Service (ITSS), and Business Auxiliary Service (BAS). 

The Commissioner directed the grant of refund of unutilized input service credit under Rule 5 of the CENVAT Credit Rules. Thus the revenue appealed against the order passed by the Commissioner. 

Anandalakshmi Ganeshram, the counsel for the department contended that the premises from where the services were exported were not registered with the Service Tax Department in terms of notification of Central Excise. 

It was further submitted that the assessee was not entitled to get the claim of refund of input service credit and the order passed by the Commissioner (Appeals) was not as per the law and liable to be deleted. 

Mihir Mehta, the counsel for the assessee contended that the notification does not prohibit the grant of CENVAT credit, even, if, the premises are not registered. 

It was also submitted that an application was to be made, by correlating it, with the location of the registered premises cannot be applied by implication, be read in a manner that obliterates the rights of the exporter of output services, to claim a refund of CENVAT credit. 

The two-member bench comprising P. Dinesha (Judicial) and M. Ajit Kumar (Technical) held that the appeal filed by the revenue does not contain any merit and is dismissed. 

To Read the full text of the Order CLICK HERE

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