2007 (5) TMI 399

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..... Heard both sides. The appellant has filed this appeal against the impugned order whereby the credit in respect of inputs service i.e. service tax paid on Mobile Phone Bills was denied. The Revenue denied the credit in view of the Board Circular No. 59/8/2003-S.T., dated 20-6-2003. The Circular provides that credit in respect of the input service is available in respect of phones installed in the .....

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..... .T.R. 79. In this case, the Tribunal held that a manufacturer is entitled for credit in respect of the service tax paid on mobile phone bills as there is no prohibition under the rules for taking such credit. 3. The contention of revenue is that the rule specifically provides that if input service is used by the manufacturer in or in relation to the manufacture of final product and clearance of .....

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..... on mobile phone bills. However, the appellant has to satisfy the Adjudicating Authority to show that the credit is being availed in respect of the input service which is used directly or indirectly in or in relation the manufacture of final product and clearance of final product from the place of removal. I find that the lower authorities have not gone into this fact. Therefore, the matter requir .....

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