CENVAT Credit- Two adjacent units with common service tax registration

Apotex Research (P.) Ltd. vs. Commissioner of Central Excise, Customs & Service Tax, Bangalore [2015] 54 taxmann.com 275 (Bangalore)

CENVAT Credit- Two adjacent units with common service tax registration - CENVAT credit can be availed irrespective of invoice addressed to head office or to any of the adjacent units.

FACTS:                                           

Assessee had two adjacent units under a common service tax registration. They availed service tax credit without considering whether the invoice was addressed to the head office or to units. Department denied credit based on the grounds that Central Excise registrations were different and since there was another sister concern adjacent to the two units, there was also a possibility that input service could have been utilized by the said sister concern unit.

HELD:

Tribunal allowing the appeal held that when the service tax registration is common and both the units are located adjacent to each other, insisting that the service tax also should be segregated may not be relevant.