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2010 (12) TMI 83 - AT - Service TaxDistribution of input services - whether restriction on distribution of input credit relating to one unit of a manufacturer/service provider to another unit of the same manufacturer/service provider is required to be applied - Held that: - The combined reading of the Rule 7 and the clarificatory Circular dated 23-8-2007 clearly shows 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. The restrictions sought to be applied by the Department in this case in limiting the distribution of the Service Tax credit made in respect of the Malur Unit on the ground that the services were used in respect of the Cuttack Unit finds no mention in the relevant rules. - Decided in favor of assessee.
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