Transfer of credit

[Guest]

OUR CLEINT IS HAVING MANAUFACTURING UNIT IN TWO LOCATIONS AND HEAD OFFICE AT COCHIN.IS THERE ANY CASELAW/JUDGMENT ON TRANSFER OF CREDIT BY HO (ISDN) TO UNITS UNIFORMILLY OR AT THE OPTION OF ISDN SOLE DECESION TO PASS ON CREDIT TO ONLY ONE UNIT.

AI Summary

Service Tax Credit Transfer: No Case Law on Head Office Discretion; Credits to Exempt Units Non-Transferable, No Uniform Distribution Required. A client with manufacturing units in two locations and a head office in Cochin inquired about the legalities of transferring service tax credit from the head office to the units. Specifically, they sought case law or judgments regarding the head office's discretion to transfer credit to one unit or uniformly to all. The response indicated no known case law addressing this issue, but clarified that cenvat credit attributable to an exempted unit cannot be transferred, and there is no requirement to distribute credit uniformly.