2024-VIL-629-CESTAT-MUM-CE
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CENTRAL EXCISE CESTAT Cases

Central Excise - Cenvat credit on ‘garden maintenance service’, ‘canteen service’, ‘housekeeping service’ and ‘fire protection service’ - Recovery of credit on the ground that the invoices are issued to another entity of the appellant and that the services having been availed in common with the other registered assessees of the appellant is not proper when not through the mechanism of ‘input service distributor’ under rule 7 of CCR, 2004 – HELD - the availment of tax paid on ‘garden maintenance service’, ‘catering service’ and ‘housekeeping service’ as CENVAT credit is beyond dispute – If the claim of the appellant that it is the ‘transformer division’ that was billed for the impugned services is correct, the proceeding acquire a different complexion; the credit would have been taken by the proper entity. Furthermore, the case made out against the appellant is that the they could not have taken the entire credit pertaining to common input service to the ‘transformer division’ which would be a plausible proposition if the credit was to be distributed. Such contingency would not arise of the service was procured by the ‘transformer division’ and not by an office of the appellant-company. The claim of the appellant has not been controverted in the impugned order. The appellant, too, has not evinced any documents in support of the claim - Determination of this claim is crucial as it has a bearing on the process by which credit of ‘input service’ could be distributed. Only then would it be possible to ascertain if the failure to obtain registration as ‘input service distributor’ did impact distribution of credit - the impugned order is set aside and matter is remanded to ascertain the correctness of the claim that bills were raised on a department of the ‘transformer division’ and, if not, to determine the correctness of the contention that procedural irregularity would not stand in the way of taking the credit entirely as the rule, then in existence, allowed - Appeal is allowed by way of remand
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