Forgot password
New User/ Regiser
⇒ Register to get Live Demo
2009 (10) TMI 171 - CESTAT, BANGALORE
Cenvat Credit-Distribution- The assessee had distributed credit of service tax in respect of its unit at ‘M’ even though service tax had been paid in respect of services used by its unit at ‘C’. The revenue denied the distribution of service tax credit on the ground that the service tax credit relating to one unit should not be distributed to another unit. The adjudicating authority approves such distribution. However the Commissioner (Appeals) also confirms this. Held that- there are only two restrictions regarding the distribution of the credit. The first restriction is that the credit should not exceed the amount of service tax paid. The second restriction is that the credit should not be attributable to services used in manufacture of exempted goods or providing of exempted services. There are no other restrictions under the rules, As such, restricting the distribution of service tax credit in a manner as has been done by the impugned order of the lower appellate authority cannot be upheld, allow the appeals.