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 utilisation: centralized registration may permit using branch credit if registered office is billing authority.
Advises that if the registered office is the billing authority for a branch, the taxpayer may use centralized registration to utilize the branch's CENVAT credit; otherwise the branch must obtain its own service tax registration to avail credit.