Appellate Tribunal Allows Credit for Service Tax on Branch Office Services

The Appellate Tribunal CESTAT HYDERABAD held that the respondent can claim credit for service tax paid on cleaning and telephone services, even if provided at branch offices. The Department's contention that credit is not allowed for services outside the factory premises was dismissed. The appeal was rejected as the definition of input services does not mandate services to be utilized within the factory premises.

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The Appellate Tribunal CESTAT HYDERABAD ruled that the respondent is eligible to avail credit of service tax paid on cleaning and telephone services, even if rendered at branch offices. The Department's argument that credit is not admissible for services rendered outside the factory premises was rejected. The appeal was dismissed as the definition of input services does not require services to be availed within the factory itself.

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