In a recent decision, Commissioner Service Tax v. M/S Pangea 3 Legal Database Systems Pvt. Ltd, the division bench of the Allahabad High Court held that assessee can avail Cenvat credit in respect of input services received at the premises other than the premises registered under the Act.
The respondent-assessee, is a 100% export oriented unit providing output service such as business auxiliary service falling under Section 65 (105) (zzb) of the Finance Act, 1994. The said service is also covered under Rule 3 (iii) of the Export of Service Rules, 2005.Though the assessee had registered under the Finance Act, 1994 in respect of the aforesaid service, the registration was confined to its office at NOIDA. The assessee took registration in respect of its additional office in Mumbai in 2012. The Department claimed that the CENVAT on service provided from the Mumbai premises could not be availed by the opposite party prior to the date of inclusion of the Mumbai premises in the registration.
On second appeal, the Appellate Tribunal found that the assesseeis in legal occupation of the said premises, have rendered output services from such premises and have maintained centralised accounting at the Noida Office. Therefore, it was concluded that the assessee can avail Cenvat credit in respect of input services received at the premises other than the premises at Noida. Revenue challenged the order before the High Court.
The bench noted that in Commissioner, Service Tax CommissionerateVs. M/s Atrenta India Pvt. Noida, a bench of the similar Court held that therefund could not be denied to the assessee merely on the basis ofnon-registration of the premises. In view of the decision, the bench dismissed the Revenue’s appeal.
Read the full text of the order below.
