2010 (6) TMI 211 - AT - Service Tax

Cenvat Credit on Service Tax - Cenvat credit of Rs. 35,137/- has been disallowed on the ground that while tax was paid on input service at depots and in other offices, the service was not received in the premises of the factory in which the manufacturing activity took place. Penalty of Rs. 10,000/- has also been imposed. Held that- there is no requirement in law that the credit can be taken only on Service tax paid on services received in the factory premises. This view is supported by the Tribunal s order in Metro Shoes Pvt. Ltd. v. CCE, 2008 -TMI - 4278 - CESTAT, MUMBAI, thus ground for denial not sustainable.

Summary

The Appellate Tribunal CESTAT, Chennai allowed the appeal regarding disallowance of Cenvat credit of Rs. 35,137/-, stating that credit can be taken on services received outside the factory premises. The Tribunal also found that the assessee's vouchers were eligible documents for taking credit. The penalty of Rs. 10,000/- was set aside.