2012 (4) TMI 429 - AT - Service Tax

Eligibility to the appellant for service tax credit paid on Mobile Telephone services on the basis of invoices issued by Head Office as service tax distributor Held that - Since the credit was taken on the basis of invoices issued by Head Office, the details of Mobile Phone/phones in respect of which service tax was paid and in whose name the mobile phone is not have been shown or seen by the authorities- as assessee has no objection to produce the documents the matter is remanded to the original adjudicating authority for verification of documents relating to utilization of mobile phone and payment of service tax of such services.

Summary

Issues involved:
Eligibility for service tax credit on mobile telephone services based on invoices from Head Office.

Analysis:
The appeal and stay petition revolve around the eligibility of the appellant for service tax credit paid on Mobile Telephone services, based on invoices issued by the Head Office as a service tax distributor. The main objection raised by the department in the impugned order is the lack of documentary evidence demonstrating that the Mobile Services were used in relation to the business or manufacture of goods. The crux of the matter lies in the production and verification of documentary evidence by the authorities. Both parties agree that the appeal can be decided at the stay stage itself, leading to the waiver of pre-deposit for a final decision.

Regarding the eligibility of service tax credit on Mobile phone services, it is acknowledged that such credit can be granted if it is demonstrated that the mobile phones for which credit was taken were installed in the office premises and used for office purposes. However, in this case, as the credit was claimed based on invoices from the Head Office, the specific details of the mobile phones and their usage may not have been presented to the authorities. The appellant's counsel concedes that the necessary documents can be produced before the adjudicating authority if the matter is remanded. Consequently, the case is remanded to the original adjudicating authority for a thorough verification of the documents pertaining to the utilization of mobile phones and the payment of service tax on such services.