Cenvat Credit can’t be denied merely on ground that Invoice issued in the Name of Head Office which has Centralized Registration: CESTAT [Read Order]

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Chennai bench has held that cenvat credit cannot be denied solely on the ground that the invoice is issued in the name of the Head office which has centralized registration.

The appellants are engaged in the manufacture of steel furniture and are availing cenvat credit on inputs, input services, and capital goods. It was noticed that during the period from November 2015 to October 2016 and May 2017 to June 2017, the appellant availed cenvat credit on commissioning and installation services which appeared to be ineligible in terms of Rule 2(l) of CCR 2004. As a sequel to notices issued for the preceding period from time to time, Statements of Demands (SODs) to recover ineligible credit were issued. After due process of law, the adjudicating authority confirmed the demand of recovery of the ineligible credit with the interest and imposed penalties.

Judicial Member Ms. Sulekha Beevi and Technical Member Mr. Anjani Kumar held that the facts and circumstances leading to the statements of demand are identical to the earlier SCNs.

“This being so, the authorities below ought to have applied the decision of the Tribunal and allowed the credit. Instead, the adjudicating authority has held that the invoice has been issued in the name of the Head office of the appellant company and that services are rendered at the Ambattur plant (Chennai). There is no law that restricts or prohibits the invoice being issued in the name of the Head office which has Centralized Registration. The purpose of taking centralized registration is to help the manufacturer for the availment of credit as well as distribution of credit. The disallowance of credit raising such an issue which is not alleged in SCN cannot sustain,” the Tribunal said.

To Read the full text of the Order CLICK HERE

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