PASHUPATI ACRYLON LTD. Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) THE prayer in the application is to dispense with the condition of pre -deposit of duty of Rs. 1,22,27,236/ - confirmed against the appellant by denying them the benefit of Modvat credit of duty availed during the period Feb. 2005 to Feb. 2008. In addition, penalty of identical amount stands imposed upon them. After hearing both the sides, we find that the said credit stands denied on the ground that the same has been availed on the basis of the advice notes issued by their Corporate Head Office located in Delhi, along with the invoices of service provider. It stands observed that inasmuch as their Head Office was not registered under ISD, the availment of credit on the basis of advice notes issued by them is not proper.

(2.) Ld. Advocate submits that apart from the fact that the said requirement is only procedural; that the appellant is the only manufacturing unit and strictly speaking the procedure of ISD registration will not be available to them. In any case, subsequently, the Head Office was registered with the service tax department and there is no dispute on the same. Apart from the above, he submits that the demand having been raised on 8 -1 -2010 is barred by limitation. He also relies upon the earlier orders of the Tribunal in the case of Commissioner of Customs & Central Excise, Vapi v. DNH Spinners reported in : 2009 (16) S.T.R. 418 (Tribunal -Ahmd.) : 2009 (244) E.L.T. 65 (Tribunal) and Durferrit Asea Pvt. Ltd. v. CCE, Guntur reported in : 2010 (258) E.L.T. 414 (Tribunal -Bang.) : 2011 (22) S.T.R. 583 (Tribunal). We find that there is no dispute about the input service received by the appellant and admissibility of the credit. The only objection raised by the Revenue is procedural and too technical. The denial of the credit on the ground of Head Office not being registered with the Service Tax Department should not be adopted as one of the reasons for denial of the credit. We also find that a strong prima facie case in favour the appellant. We accordingly waive the requirement of pre -deposit of duty and penalty. The stay application is allowed in the above terms.