2013 (2) TMI 134 - AT - Service Tax

CENVAT Credit on mobile phone - Whether CENVAT credit of the service tax paid on telephone (mobile phone) service is admissible - October 2004 to October 2005 - Held that - Following the decision in case of EXCEL CROP CARE LTD. (2008 (7) TMI 160 - HIGH COURT GUJARAT) that the mobile phones were owned by the assessee and supplied to their employees to be used in or in relation to the manufacture and clearance of their final product. Therefore, CENVAT credit was allowed to the assessees in respect of mobile phone service. In favour of assessee

Summary

The Appellate Tribunal CESTAT Bangalore allowed CENVAT credit for service tax paid on mobile phone service to the appellant for the period from October 2004 to October 2005. The decision was based on the fact that the mobile phones were owned by the appellant and provided to employees for business purposes related to manufacturing and clearance of final products. The tribunal cited relevant case laws supporting their decision. The impugned order was set aside, and the appeal was allowed.