In Service Tax Appeal No. 50270 of 2017- CESTAT - Cenvat Credit cannot be denied on account of unregistered premises, once Rule 4A of Service Tax Rules, 1994 and Rule 9 of Cenvat Credit Rules, 2004 requirements are met: CESTAT (Delhi)
Members Dilip Gupta (President) & P. Anjani Kumar (Technical) [22-05-2023]

Read Order: M/s Reliance HR Services Private Limited v. Assistant Commissioner of Service Tax

Chahat Varma

New Delhi, May 23, 2023: The Principal bench of the Customs, Excise and Service Tax Appellate Tribunal by placing reliance on Rajender Kumar & Associates v. Commr. of Service Tax, Delhi-II [LQ/CESTAT/2020/229], has held that once the requirements of Rule 4A of the Service Tax Rules, 1994 and Rule 9 of Cenvat Credit Rules, 2004 are satisfied, the benefit of Cenvat credit on account of unregistered premises cannot be denied.

In the present case, M/s Reliance HR Services Private Limited (appellants) were engaged in the provision of manpower recruitment agency and commercial training or coaching services. During the course of audit conducted, it was noticed that the appellants had wrongly availed Cenvat credit on input services and invoices issued in the name of locations which were not included in the Centralized registration.

The appellants contended that they had availed Cenvat credit of service tax paid on the inputs/input services prior to registration at some locations with the service tax department and eligibility of credit usage of such services for providing taxable output services were not under dispute, therefore, non-registration of the branches was only a procedural lapse.

The Tribunal observed that in terms of Rule 4A (1) of Service Tax Rules, 1994, the invoice or the challan shall be serially numbered and shall contain the name, address and registration number of such person (i.e., provider of the services); name and address of the person receiving taxable service; description and value of taxable service provided or agreed to be provided and the service tax payable thereon.

The Tribunal further observed that as per proviso to Rule 9(1) of Cenvat Credit Rules, even if the duty paying documents does not contain all particulars but contain the details of duty or service tax paid or payable, description of the goods or taxable service, assessable value, name and address of the factory or warehouse or premises of first or second stage dealers or provider of output service, the Cenvat credit may be allowed.