2019 (8) TMI 202 - AT - Central Excise

CENVAT Credit - input services - telephone/ mobile services - HELD THAT - There is no dispute that telephone is installed in the factory of the appellant and the same is used by the staff for the factory activities. Mobile phones used by the employees - HELD THAT - The bills of the telephone/ mobiles are in the name of the Company. In various judgments cited by the ld. Counsel, the Cenvat credit in respect of telephone/ mobiles has been considered and held that credit is admissible - credit allowed. Appeal allowed in part.

Summary

Issues:
Entitlement to Cenvat credit for telephone/mobile services, rent-a-cab, and canteen services.

Analysis:
The appellant, represented by Ms. Priyanka Kalwani, acknowledged the payment for rent-a-cab and canteen services and did not contest the admissibility of Cenvat credit for these services. However, the appellant argued in favor of claiming Cenvat credit for telephone services and mobile phones used by employees, citing various judgments supporting their claim. They also referred to a previous Tribunal decision on the admissibility of Cenvat credit. On the other hand, Shri S.N. Gohil, representing the Revenue, reiterated the findings of the impugned order.

Upon hearing both sides and examining the records, the Tribunal addressed the admissibility of Cenvat credit for rent-a-cab, canteen services, telephone services, and mobile phones. The Tribunal noted that the appellant had already paid for rent-a-cab and canteen services along with interest and penalty, thus upholding the amount paid. Regarding telephone services, it was established that telephones were installed in the factory and used by staff for factory activities. The bills for mobile phones were in the name of the Company. Citing various judgments and the appellant's previous case, the Tribunal concluded that Cenvat credit for telephone and mobile phones was admissible. The Tribunal referred to judgments from the Hon'ble Gujarat High Court and Hon'ble Bombay High Court to support their decision. Consequently, the impugned orders were modified, with Appeal No. E/13151/2018 allowed and Appeal No. E/13150/2018 partly allowed.

This judgment clarifies the admissibility of Cenvat credit for specific services and devices utilized by the appellant, highlighting the importance of relevant case law and previous tribunal decisions in determining such entitlements.