2008 (10) TMI 102 - AT - Service Tax

Transfer of credit from branch office to head office revenue submits that the credit on services has nothing to do with the manufacturing operation by head office - appellant pointed out that branch office is only doing transfer of credit and admissibility of credit has to be examined at the manufacturer s end and therefore, proper procedure for Revenue to follow was to raise the demand at manufacturer s end Commissioner rightly allowed the credit of service tax taken by their branch office

Summary

The Appellate Tribunal CESTAT, Ahmedabad rejected the Revenue's stay application against the Commissioner (Appeals) order allowing credit of service tax taken by a branch office for transfer to the head office. The Tribunal found no justification for staying the Commissioner's order at this stage.