The Ahmedabad bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) directed re-adjudicating to the adjudicating authority for the denial of CENVAT credit of excise duty without analyzing Input Service Distributor (ISD) invoice.
Zcl Chemicals Limited, the appellant assessee appealed against the order passed by the adjudicating authority against the denial of the CENVAT credit which was availed by the assessee.
Vinay Kansara, the counsel for the assessee contended that as regards the dispute about the address on the invoice the allegation was incorrect for the reason that the assessee had taken the credit on the ISD invoice whereas the department has considered the credit on the invoice received by their head office in Mumbai which bears the name of the Mumbai office, Since the credit was taken on the ISD invoice the entire basis for the denial of credit was incorrect.
Ajay Kumar Samota, the counsel for the department contended that there was no nexus between the input services of the assessee and manufacturing of the final product.
The Bench observed that the Adjudicating Authority had not considered the ISD invoices if it was found that the assessee had taken the credit not based on invoices issued to their Mumbai office but on the ISD invoice bearing the name and address of the assessee factory, the assessee was prima facie eligible for credit.
The two-member bench comprising Ramesh Nair (Judicial) and Raju (Technical) remanded the matter back to the adjudicating authority for re-consideration after verifying the ISD invoices.
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