2012 (10) TMI 767 - AT - Service Tax

Cenvat credit - show cause notice to point out that if the Mobile-phone was not installed in the registered premises, that became the reason for denial of Cenvat credit Held that - In the view of show cause notice, it is inconceivable how an input service wherever exists shall be reason to grant Cenvat credit - requirement of law is that such service must be relevant to manufacture or providing output service. That was not disputed in the show cause notice - waiver of pre-deposit allowed.

Summary

The Appellate Tribunal CESTAT, New Delhi allowed the appeal of the appellant regarding denial of Cenvat credit for a mobile phone not installed in registered premises. The tribunal found that the input service must be relevant to manufacturing or providing output service to grant Cenvat credit. The requirement of pre-deposit was dispensed with, and the appeal was allowed.