Moser Bear India Ltd. Vs. CCE, Noida [TS368-Tribunal-2014(DEL)]
The head office of Moser Bear India Ltd. (the Appellant), located at Delhi is registered as an input service distributer (ISD) in terms of Rule 2(m) of the Cenvat Credit Rules, 2004 (the Credit Rules). The head office was discharging Service tax liability under Reverse Charge for the various services received by them from foreign country. The Service tax so paid by them on the various services, were actually being utilized by the Appellant in their factory located at Noida, which was distributed by the head office to the Appellant’s factory at Noida. The Appellant was utilizing the same for discharge of their Service tax liability.
The Department contended that in as much as the Service tax was being paid by the head office which was neither engaged in the manufacture of any excisable goods nor providing any output services, were not entitled to avail the said credit and in turn not entitled to pass on the said credit to the Appellant’s factory located at Noida.
The Hon’ble CESTAT, Delhi held that:
(Bimal Jain, FCA, FCS, LLB, B.Com (Hons), Mobile: +91 9810604563, Email: [email protected])