CENVAT CREDIT AVAILED FOR A BRANCH WHICH DIDN'T HAVE SERVICE TAX REGISTRATION

[NARESH PAREEK]

MY CLIENT IS A COMPANY HAVING ITS REGISTERED OFFICE AT KOLKATA (SAY) AND BRANCH OFFICE AT JALPAIGURI. THE COMPANY IS REGISTERED UNDER SINGLE PREMISES REGISTRATION AT KOLKATA BUT ARE UTILISING CENVAT CREDIT OF JALPAIGURI ALSO. NOW, THE DEPARTMENT HAS ASKED THE PAPERS. CAN CENVAT CREDIT BE UTILISED ? IS THERE ANY CASE LAW FAVOURING OUR SITUATION.

[DR.MARIAPPAN GOVINDARAJAN]

If your registered office is billing authority for the branch office also then you may take centralized registration and can utilize the CENVAT credit of your branch office. Otherwise you have tor register your branch office and avail the credit at the branch office end.

AI Summary

CENVAT Credit Utilization: Centralized Registration Valid if Billing Done from Registered Office; Separate Registration Needed Otherwise. A company with its registered office in Kolkata and a branch in Jalpaiguri is utilizing CENVAT credit for both locations, despite only having a single premises registration in Kolkata. The tax department has requested documentation, prompting a query about the legitimacy of this practice. The response suggests that if the registered office acts as the billing authority for the branch, centralized registration could allow for CENVAT credit utilization across both locations. Otherwise, the branch office must be separately registered to avail credit.