9911796707
TMI Blog2008 (7) TMI 160X X X X Extracts X X X X X X X X Extracts X X X X ..... iled Cenvat credit of Service Tax paid on mobile phone services in respect of mobile phones used by employees and officers of respondent assessee. The dispute relates to the period from March 2005 to September 2005 involving an amount of Rs.56,188/-. According to the appellant, the assessee was not entitled to the credit on the ground that mobile phones are not phones installed in the factory premises and therefore, cannot be treated as 'input service' in terms of Circular No.59/8/2003 dated 20.6.2003 issued by the Central Board of Excise & Customs. The contention of the assessee that the said circular was issued in context of Service Tax Credit Rules, 2002 and hence, is not applicable in relation to a claim under Cenvat Credit Rules, 2004 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of 'input service' so as to be eligible for credit under Rule 3 of the Rules. 6. In the facts of the case, it is not in dispute that mobile phones were provided by the employer, namely the respondent assessee, to its employees and officers. There is nothing on record to indicate that the activities carried out by such staff members are not relatable to the business of manufacturing carried on by respondent assessee. The said Rule reads as under: "'Input service' means any service, - (i) used by a provider of taxable service for providing an output service, or (ii) used by the manufacture, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products from the place of removal, and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce for which he is liable to pay service tax shall be deemed to be the output service. Similarly, the definition of the phrase 'provider of taxable service' appearing in Rule 2(r) includes a person liable for paying service tax. 8. Therefore, on a conjoint reading of the aforesaid provisions, it is apparent that the mobile service provider, who is liable to pay service tax, and recovers the same by adding such service tax in his bill, is the person providing taxable service and is rendering 'output service' so as to constitute 'input service' in hands of respondent assessee. 9. In the aforesaid circumstances, the ground on which the credit was disallowed, namely, the phones were not installed in the factory premises, cannot be termed to b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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