Relief to Punjab Gramin Bank: CESTAT Rules Cenvat Credit Allowed Without ISD Registration If Reflected in ST-3 Returns

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has provided significant relief to Punjab Gramin Bank by allowing it to claim CENVAT credit even without an Input Service Distributor (ISD) registration. The tribunal ruled that if the CENVAT credit is duly reflected in the ST-3 returns filed by the bank, the credit should be permitted, regardless of the absence of a formal ISD registration. This decision eases compliance burdens for banks and other service providers, recognizing that the substance of the claim, as evidenced by returns, outweighs a procedural registration lapse, thereby promoting ease of doing business for financial institutions.