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2009 (8) TMI 437 - AT - Service TaxCenvat credit of service tax- distribution of credit by input service distributor. Total credit received was proportionately distributed by Kolkata corporate office over different units including those situated in exempted area. Adjudicating commissioner vide impugned order proceeded to re-distributed amount allocated to Chennai unit over other units based on proportionate production. Appellant’s contention that such re-distribution by commissioner having jurisdiction over only one unit not justified when authorities having jurisdiction over only one unit not questioned initial distribution done in Kolkata. Held- Commissioner having jurisdiction of Chennai unit entitled to examine and ensure that credit allocated to Chennai unit is proper but he has to take into account total credit received by corporate office and manner in which distributed. Credit available to Chennai unit artificially lowered, not sustainable. Matter remanded to Commissioner for a fresh decision.
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