2008 (5) TMI 121 - AT - Service Tax

Denial of credit of service tax paid in respect of mobile phones in view of Circular No.97/8/2007-ST held that credit of service tax paid in respect of mobile telephone services is admissible, if the same are used for providing output services or use in or in relation to manufacture of finished goods merely because tribunal s decision in M/s. Indian Rayon & Industries Ltd. s has been challenged by the Revenue, credit cannot be denied revenue s appeal rejected

Summary

The Appellate Tribunal CESTAT Ahmedabad rejected the Revenue's appeal regarding denial of credit of service tax paid on mobile phones. The Tribunal upheld the decision of the original Adjudicating Authority and Commissioner (Appeals), stating that the benefit of the law declared by the Tribunal must be extended to the respondents. The Tribunal cited a Board circular confirming the admissibility of service tax credit on mobile telephone services used for output services or in manufacturing finished goods. The Revenue's appeal was dismissed.