2008 (8) TMI 279 - AT - Service Tax

Credit of Service Tax paid on Mobile Phones - from the show cause notice it is clearly mentioned that the Mobile Phones were used in the Respondent s work place and Corporate office - contention of the ld. DR that the Respondent failed to produce any evidence regarding the use of the Mobile Phones is without any substance - it is evident that the Mobile Phones were used at their Corporate Office and the work place - Therefore, there is no reason to deny the Credit

Summary

Issues:
- Availment of Cenvat Credit on Service Tax paid on Mobile Phones for business activities.

Analysis:
The judgment pertains to multiple appeals arising from a common order regarding the availment of Cenvat Credit on Service Tax paid on Mobile Phones by the Respondents for their business activities. The Respondents utilized the credit to pay central excise duty for their finished goods during a specific period. The issue raised was the eligibility of the Respondents to avail such credit, considering the applicability of a CBEC Circular. The Tribunal analyzed the submissions from both sides, where the Departmental Representative (DR) argued that the Respondents did not provide evidence of exclusive use of Mobile Phones for specified business activities as per the Cenvat Credit Rules.

Upon examining the facts, the Tribunal found that the Mobile Phones were indeed used at the Respondent's work premises and Corporate offices in Mumbai and Kolkata. In support of their decision, the Tribunal referred to a previous case where Cenvat credit on Service Tax paid on Mobile Phones was allowed for business transactions conducted by employees. The Tribunal emphasized that the CBEC Circular cited by the DR could not be strictly applied under the Cenvat Credit Rules. Since the Mobile Phones were utilized in the Respondent's business operations at various locations, the Tribunal concluded that there was no justification to deny the Cenvat Credit on Service Tax paid on Mobile Phones.

Based on the above analysis, the Tribunal upheld the order of the Commissioner (Appeals) and rejected the appeals filed by the Revenue. The judgment was pronounced on 19-8-2008, consolidating all appeals related to the common issue of Cenvat Credit on Service Tax paid on Mobile Phones for business purposes.