2009 (9) TMI 303 - AT - Service Tax

Cenvat Credit- Input Service- In the light of the decision of Indian Rayon & Industries Ltd. v. CCE 2007 6 STT 328 (Mum. - CESTAT) Commissioner (Appeals) held that service tax paid on mobile phone is available as credit to the service providers of output service and manufacturers in absence of any express prohibition under the Cenvat Credit Rules, 2004. Tribunal upheld the order of Commissioner (Appeals).

Summary

The Appellate Tribunal CESTAT, New Delhi rejected the appeal filed by the Revenue against the order of the Commissioner (Appeals) disallowing credit of Rs. 15,247 on a mobile phone. The Commissioner (Appeals) set aside the adjudication order based on a previous Tribunal decision, stating that service tax paid on mobile phones is eligible as credit under the Cenvat Credit Rules, 2004.