2010 (11) TMI 79 - AT - Service Tax

Cenvat credit of service tax - document regarding service tax paid in respect of service received by their depot Revenue submitted that the Jaipur unit is not registered with the Revenue as input service distributor, service tax paid by the Jaipur unit is not eligible as input credit by the manufacturing unit at Kolkata - contention of appellant is that as the service is received in respect of the sale of goods by the depot at Jaipur therefore the manufacturing unit is entitled for credit Held that - appellants are not entitled for credit at Kolkata unit which was in respect of the service received by the depot at Jaipur - appeal is dismissed.

Summary

The appeal was filed against the order confirming a demand of Rs. 26,805 and imposing a penalty of Rs. 2,000. The appellant claimed credit based on service tax paid by their Jaipur depot, but the Revenue argued that the Jaipur unit was not registered as an input service distributor. As the depot, not the appellant, received the service and was not registered, the credit was denied. The appeal was dismissed.