Case Law Details
Desai and Diwanji Vs Commissioner of CGST (CESTAT Mumbai)
It was held in that decision that in the event of centralised billing and centralised accounting system, when one registration is permissible under Section 4(2), discharging Service Tax liability from the registered premises would not disentitled the benefits of CENVAT Credit on the Service Tax paid by the service provider if invoices are raised in the name of Branch offices, even if the said Branch offices are unregistered one since Service Tax liability has been discharged by the main office also for service provided by the Branches. Further, when Service Tax has been paid from the main office for the input services received by the branch office, it was held that the ratio of the decision of this Tribunal in the case of Stadmed Pvt. Ltd. reported in 1998 (102) ELT 466 and Gujarat Heavy Chemicals Ltd. reported in 2005 (192) ELT 658 (Tri.-Mum.), though delivered in respect of MODVAT Credit on Central Excise duty, would also be applicable to the case in hand.
FULL TEXT OF THE CESTAT MUMBAI ORDER
Denial of CENVAT Credit of Rs.21,91,454/- to the Appellant law firm and its confirmation by the Commissioner (Appeals) is assailed in this order.
2. Facts of the case, in brief, is that Service Tax was held to be payable by law firms between 01.09.2009 and 30.06.2012. Accordingly, Service Tax was discharged by the Appellant from its Mumbai Head office for both its Mumbai and Delhi Branches without a centralised Registration. Appellant was availing CENVAT Credit on inputs services received at Mumbai office and also at Delhi Branch Office. Show-cause notice was issued by the Respondent- Department for reversal of CENVAT Credit of Rs.21,91,454/- which they availed in respect of unregistered Delhi office for providing service from Delhi. Matter was adjudicated upon Service Tax alongwith interest and penalty were all confirmed against the Appellant. Appellant’s appeal before the Commissioner of Central Tax (Appeals-I), Mumbai yielded no fruitful result, for which it is before this Tribunal.
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