The Ketan Motors Ltd. had a centralized accounting office in Nagpur with branch offices at Chandrapur and Amravati. The services received and the Cenvat credit availed thereon was reflected in Nagpur centralized accounting system. The Appellant had applied for Centralized Registration through a letter in which it was stated that “they may be given permission to have only one registered place in terms of rule 3(a) of Service Tax Rules” and letter bears the stamp of the receipt by the Department.
The Department objected availment of Cenvat credit of Rs. 1,27,958/- (along with imposition of penalty) on documents pertaining to unregistered premises of the Appellant at Chadrapur and Amravati by alleging that the Appellant did not apply for Centralised Registration in proper format.
The Hon’ble CESTAT, Mumbai held that there is no dispute that the Appellant vide application dated December 16, 2004 has applied for Centralized Registration and the letter bears the stamp of the receipt by the Department. This request can be considered as an application for Centralized Registration, which was granted subsequently by the Department. Thus, Cenvat Credit should not be disallowed.
(Bimal Jain, FCA, FCS, LLB, B.Com (Hons), Email: firstname.lastname@example.org)