Chartered Accountant
Bookmark and Share
click here to subscribe our newsletter
 
 
Corporate News *  GST registration cancellation without reasons amounts to ‘Economic Death’ of business: Supreme Court. *  No GST refund if appeal before GSTAT is filed late: Gujarat High Court. *  Mere upload of GST notice on portal not valid service, appeal limitation won’t start: Punjab & Haryana High Court. *  Taxpayer can’t be penalised for missing notices hidden under ‘Additional Notices/Orders’: Calcutta High Court allows fresh adjudication. *  State tax officer can’t issue GST SCN beyond CBIC-assigned jurisdiction: Bombay High Court stays recovery proceedings. *  Earlier 7.5% Pre-Deposit must count towards mandatory 10% for Appeal: Uttarakhand high court quashes CESTAT Order. *  Third Parties can’t challenge GST Advance Rulings merely due to financial impact: Karnataka HC *  GST SCN generated using AI tool quashed: Punjab & Haryana High Court *  Bank Attachment Quashed as Madras HC Quashes GST Order Issued Against Deceased Person *  ITC Blocking Order for Failure to Record ‘Reason to Believe’ U/R 86A Quashed: Allahabad High Court *  Govt Extends GSTAT Appeal Filing Deadline From 30 June to July 31, 2026 *  GST Demand on RWA Stayed: Allahabad High Court Questions Taxability of Electricity Distribution to Flat Owners *  CBIC Clarifies Jurisdiction After GST Registration Transfer: Earlier Proceedings Remain Valid, New Officer to Continue Action *  GST authorities’ certification not mandatory for reimbursement, but tax payment must be proven: Karnataka HC *  Contractor can’t seek gst reimbursement through writ when contract has arbitration clause: Karnataka HC *  Unsigned Order Is No Order in Law: AP HC Quashes GST Assessment Order for Want of Officer’s Signature *  Customs Can’t Levy Rs. 1.36 Crore Cost Recovery Charges Without Proof of Full-Day Officer Deployment: CESTAT  *  12% IGST Payable On Imported Dialysis Machine Parts: CESTAT *  Bombay High Court Admits Challenge to GST Limitation Extension Notifications; Grants Protection Against Coercive Recovery *  Criminal Case Can’t Run Parallel to GST Proceedings on Same Facts: Allahabad High Court *  Allahabad High Court Stays GST Detention Order; Directs Release of Vehicle and Goods on Deposit of Rs. 1.44 Lakh *  Service Tax Can’t Be Levied on Loss-Making Contracts: Gujarat High Court *  GSTN Mandates Ship-to GSTIN in e-Invoice and e-Way Bill APIs; Introduces Voluntary e-Way Bill Closure Facility from August 1, 2026 *  GST Appeal Can’t Be Rejected as Time-Barred When Taxpayer Was Pursuing Rectification Remedy: Telangana High Court *  Absence of E-Way Bill and Transport Documents Justifies Customs Seizure U/s 110: Gauhati HC *  Madras High Court Upholds GST Late Fee and Penalty for Non-Filing of Annual Return, Dismisses Challenge  *  GST Records, Purchase Documents Sufficient to Discharge Burden Under Customs Act: CESTAT Orders Release of 3.65 Kg Gold  *  No Sugar Cess Payable on Sugar Exported Out of India: CESTAT *  Road Construction Services Exempt and SCN Time-Barred: CESTAT Quashes Service Tax Demand Based Solely on Form 26AS  *  ITC Freeze Upheld After GST Dept Find Suppliers Were Allegedly Fake Bill-Trading Entities: Madras HC 
Subject News *  Input service benefits can’t be denied: CESTAT allows export refund despite MMTC acting as Canalising agency. *  No service tax demand without proof of service of SCN: CESTAT. *  Service tax demand quashed as dept. fails to prove service of SCN: CESTAT *  GST : Mere allegation of inadequate consideration of reply not enough to invoke writ jurisdiction: Delhi High Court *  Onerous conditions imposed for provisional release of seized imported goods shouldn’t amount to virtual denial of relief: CESTAT. *  GST SCN without alleging fraud cannot invoke sec. 74: Karnataka High Court quashes adjudication order. *  Extended Limitation Can’t Be Invoked Merely on Form 26AS Data: CESTAT *  Revenue-Sharing with Restaurants Not Taxable as Business Support Service: CESTAT *  R. 6(3) Option Can’t Be Forced on Taxpayer; CESTAT Quashes Rs. 12.36 Crore CENVAT Credit Demand *  Excise Duty | Power Consumption Alone Can’t Prove Clandestine Manufacture: Karnataka High Court *  Madras High Court Examines DGGI’s Authority to Issue GST Penalty Orders Under Section 122, Adds DGGI as Party *  Proceedings under omitted r. 96(10) can’t survive without saving clause: andhra pradesh high court quashes gst refund recovery *  Excise duty power consumption alone can’t prove clandestine manufacture: karnataka high court *  Madras high court rules GST show cause notices must disclose grounds for invoking extended limitation *  Court Can’t Direct Extension GST Return Deadlines or Waive Interest and Penalties: Karnataka High Court *  GST Notifications Can’t Go Beyond GST Council Recommendations: Madras High Court Quashes SCN on Branded Pulses *  Appeal Can’t Be Dismissed for Delay When Dept’s Own Order Mis-states Limitation Period: CESTAT *  No Evidence of KYC or Due Diligence Breach By Customs Broker: CESTAT Quashes Licence Revocation in Export Overvaluation Case *  Glucometers Are Chemical Analysis Instruments Classifiable Under Tariff Heading 9027: CESTAT *  Validity of Post-GST Service Tax Proceedings Upheld: Gujarat High Court Dismisses Challenge to S. 73 SCN *  Rectified GST Refund Applications Can’t Be Rejected as Time-Barred If Original Refund Claim Was Filed Within Limitation: Gujarat HC *  Service Tax Refund Can’t Be Denied as Time-Barred When Levy Itself Is Unconstitutional: Gujarat High Court *  Same Officer Can’t Act As Auditor & Adjudicator: Karnataka High Court *  Karnataka High Court Condones 324-Day Delay, Revives Customs Appeal in Jewellery Pilferage Case  *  Madras High Court Quashes GST Assessment Order Passed Ex Parte Despite Prior ITC Reversal; Lifts Bank Attachment *  Tobacco Process Doesn’t Amount to Manufacturing: Madras High Court Quashes Rs. 1.32 Crore Compensation Cess Demand  *  Recovery Notice Unsustainable After Voluntary Reversal of Unutilised Credit: CESTAT  *  GST | ‘System Generated’ SCN Without Officer Details Invalid: Allahabad HC  *  Electronic Records Without Statutory Certification Requirements Can’t Justify Undervaluation Allegations: CESTAT *  Madras High Court Stays GST Order, Finds Prima Facie Merit in Plea Against S. 74 Proceedings Based on S. 73 Intimation  

Comments

Print   |    |  Comment

PJ/CASE LAW/2014-15/2508

Whether Cenvat credit can be availed when invoice is in the name of head office or in the name of other unit?

Case:-M/s INOX AIR PRODUCTS LTD Vs COMMISSIONER OF CENTRAL EXCISE, RAIGAD
 
Citation:-2015-TIOL-08-CESTAT-MUM
 
Brief facts:-The appellants is in appeal against the impugned order in appeal which confirmed the demand of Service Tax of Rs. 3,86,656/- under Rule 14 of Cenvat Credit Rules read with Section 11A of the Central Excise Act, appropriate interest under Section 11AB and equivalent penalty under Section 11AC of the Act.
The appellant is engaged in the manufacture of natural gases. They have a unit in various places including units at Patalganga. The demand of duty was raised for the reason that the invoices under which the credit was availed were either in the name of their head office or in the name of their other unit at Thane. The demand was confirmed on the ground that the appellant should have been registered for ISD registration to enable distribution of credit to their respective units. Department held that mere payment is not enough to claim the credit but material evidence should be brought on record that the said services are utilized in the Patalganga unit for claiming credit in such manner. The extended time period under Section 11A was invoked.
 
Appellant’s contention:-Ld. Counsel showed as a sample, one invoice issued by the CHA agent in the name of their Head Office in respect of clearing charges for goods imported for their Patalganga Unit. For this invoice, he showed co-relation between the invoice and the Bill of Entry which was in the name of their Patalganga Unit, to prove that the service was indeed received at Patalganga Unit. Further, he stated that in the case of machine repairs, the work is centralized in the Thane Unit for all the units and, therefore, all such invoices are addressed to the Thane Unit. On being asked whether all the services were received in their unit he answered that the question of actual receipt of the services had not arisen either in the show cause notice or at the stage of adjudication order or in the appeal. He cited the judgments of this tribunal in the case of Modern Petrofils Vs. Commissioner of C.Ex, Vadodara 2010 (20) S.T.R. 627 (Tri-Ahmd.) = 2010-TIOL-1204-CESTATAHM. Doshion Ltd. Vs. Commissioner of Central Excise, Ahmedabad 2013 (288) E.L.T. 291 (Tri- Ahmd) = 2013-TIOL-395-CESTAT-AHM And Demosha Chemicals Pvt. Ltd. vs. Commissioner of C. Ex & S.T. Daman 2014 (34) S.T.R. 758 (Tri-Ahmd.) = 2014-TIOL-534-CESTAT-AHM. Availment of services at places different from the address mentioned in the invoices is only a procedural formality. And also that even if the appellant should have taken ISD registration, the same would not disentitle them from availing credit in different units before 2012 when a change was brought in Rule 7 of the Cenvat Credit Rules to the effect that the Cenvat Credit should be distributed properly amongst all the units.
 
Respondent’s contention:-The Ld. A.R. reiterated the findings of the authority. He further stated that it has not been verified whether the services had actually been received in the Patalganga Unit.
 
Reasoning of judgment:-The Hon’ble Tribunal have carefully considered the rival contentions. The appellant in this case have nine units where the same product is manufactured. Therefore, the doubt of nexus of input and output products will not arise. Ld. Counsel has also shown a particular invoice issued by a CHA in the name of the Head Office. It is quite natural that the service provided by a CHA would be in the name of the Head Office where clearance of goods through Customs will be centralized. They agree that a doubt has never been raised regarding the actual receipt of the services. The only basis for denying credit has been that invoices are either in the name of another unit of the appellant or in the name of their Head Office. The judgments cited above touch upon the issue at hand in support of the case of the appellant. There being no allegation of the service have not been received, the credit stands to be allowed.
In view of the above, the appeal is allowed.
 
Decision:-Appeal allowed.
 
Comment:-The analogy of the case is that here only basis for denying credit has been that invoices are either in the name of another unit of the appellant or in the name of their Head Office. This is quite natural that the service provided by CHA would be in the name of the HO where clearance of goods through Customs will be centralized. Hence actual receipt of service does not matter for credit. Therefore, appellant can avail the Cenvat credit of service received by CHA.
 
Prepared by:- Monika Tak

Department News


Query

 
PRADEEP JAIN, F.C.A.

Head Office : -

Address :
"SUGYAN", H - 29, SHASTRI NAGAR, JODHPUR (RAJ.) - 342003

Phone No. :
0291 - 2439496, 0291 - 3258496

Mobile No. :
09314722236

Fax No. :0291 - 2439496


Branch Office : -

Address:
1008, 10th FLOOR, SUKH SAGAR COMPLEX,
NEAR FORTUNE LANDMARK HOTEL, USMANPURA,
ASHRAM ROAD, AHMEDABAD-380013

Phone No. :
079-32999496, 27560043

Mobile No. :
093777659496, 09377649496

E-mail :pradeep@capradeepjain.com