Order date – 07 November 2022

 Facts –

• The Appellant, M/s. Arkkays National Engineering & Foundry Co. Unit-I is a manufacturer of Bright Bars of the Free cutting steel, Carbon steel and alloy steel and are registered with the Central Excise Department. The appellant has several units. They were availing the facility of cenvat credit on various input services.
• During the course of audit of accounts, it was noticed that they have availed ineligible credit on Bank charges as well as Chartered Accountant services. Accordingly a show cause notice was issued.
• Aggrieve appellant had filed an appeal.

Issue –

• Whether credits availed on bank charges and Chartered Accountant services are eligible or not?

Order –

• The Tribunal observed that Hon’ble High Court of Gujarat has upheld the Tribunal decision in the case of CCE Vs Dashion Ltd. - 2016 (41) S.T.R 884 (Guj.). in which it was held that there is nothing in statutory rules to disentitle an unregistered input service distributor from availing cenvat credit and that non-taking registration is only a procedural error which is curable.
• It is also finds that the Department does not dispute the collection of bank charges by the bank for the services provided by the appellant. Merely because the credit is availed on bank advice / bank statement the credit cannot be denied unless there is discrepancy in these documents. 
• The credit in respect of Chartered Accountant services has been denied alleging that the bills are not issued in the name of the appellant, but has been issued in the name of an individual. On perusal, it is seen that these bills are addressed to the appellant-company and not in the name of an individual. After mentioning the name of the company, the name of the Kartha Mr.Ashok Ramchand Bulchandani has also been mentioned. This will not make the bills issued in the name of an individual. 
• The tribunal held that the denial of credit on Chartered Accountant cannot be sustained. 
• Hence the appeal was allowed.