2026-VIL-1139-CESTAT-CHD-CE
  1. Home
  2. 2026-VIL-1139-CESTAT-CHD-CE

CENTRAL EXCISE CESTAT Cases

Central Excise - Cenvat Credit on Input Services - Centralized Registration - ISD Distribution Requirement - Assessee paid service tax under Reverse Charge through its centralized registration and availed Cenvat Credit on the basis of GAR-7 challans - Department contended that since the head office was registered as an Input Service Distributor (ISD), the credit should have been distributed by the ISD unit to the manufacturing unit - Whether an assessee can avail Cenvat Credit on input services received at its manufacturing unit by paying service tax through its centralized registration and claiming credit on the basis of GAR-7 challans, without the requirement of distribution through the ISD route – HELD - The assessee has rightly availed the Cenvat Credit on input services through its centralized registration. The service tax payment challan is a valid and admissible document for claiming credit as provided under Rule 9(1)(e) of the Cenvat Credit Rules. Distribution through ISD is not mandatory when the input services are availed only by a specific unit and not common to all units. The invoices were issued directly to the assessee's manufacturing unit, and the payment of service tax was made by the assessee itself through its centralized registration. The impugned orders have been passed on an incorrect factual understanding of the transaction - The Tribunal in M/s Luminous Power Technologies Pvt Ltd case held that service tax payment challans are valid documents for credit availment and that non-registration as ISD or non-distribution through ISD route is a procedural lapse which cannot deny the substantive right of Cenvat Credit when all material facts and conditions are satisfied – Further, the entire transaction is revenue neutral and the records are available for verification. Procedural infirmities cannot be used to deny a substantive statutory right when the underlying substance of the transaction is correct and compliant with the rules - The impugned orders are set aside and the appeals are allowed
Download File
show more Judgements  

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Weekly Summary

VIL Video

GSTAT Filing Near: Closing Resolutions...
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Security-Code
New Code?

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Security-Code
New Code?

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?