9911796707
TMI Blog2008 (9) TMI 190X X X X Extracts X X X X X X X X Extracts X X X X ..... Member (T) Mrs. Sudha Koka, SDR, for the Appellant. Shri C.R. Raghavendra, C.A. , for the Respondent. [Order per S.L. Peeran, Member (J) (Oral)]. - This revenue appeal arises from Order-in-Appeal No. 228/2007 dated 10-10-2007 by which the Commissioner (A) has held that assessee is eligible to avail Cenvat credit on Service Tax paid on mobile phone services. The findings recorded by him, which is in Page 16 are reproduced herein below: I have carefully gone through the records of the case and submissions made by the appellants in their grounds of appeal and during personal hearing. The issue to be decided here whether the appellant is eligible for availing cenvat credit and of service tax and education cess paid on input s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nvat Credit Rules 2004 were applicable. (b) I find that Rule 4(1) of the Cenvat Credit Rules, 2004 states that credit in respect of inputs may be taken on receipt of the inputs in the factory of manufacture or in the premises of the provider of the output service. But no such stipulating regarding receipt of the input service, which is separately defined in the Rules is provided. Sub-Rule (7) of Rule 4 of the Cenvat Credit Rules 2004 merely provides that cenvat credit in respect of input service should be allowed on or after the date on which payment is made for the value of input service and the service tax paid or payable is indicated in the invoice bills or challans. I do not find anywhere in the Rules any provision disallowing credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n service tax paid in respect of mobile phones. In the Service Tax Credit Rules, 2002, it was prescribed that credit of service tax was admissible only on telephone connection installed in the business premises. A clarification to this effect was also issued vide Circular No. 59/8/2003-S.T., dated 20-6- 2003 [2003 (155) E.L.T. T7], in the context of the Service Tax Credit Rules, 2002. However, in the Cenvat Credit Rules, 2004 no such condition has been prescribed. Therefore, w.e.f. 10-9-2004, credit of service tax paid in respect of mobile phone service is admissible, provided the mobile phone is used for providing output service or used in or in relation to manufacture of finished goods. 4.1 He points out to this paragraph and submits ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have perused all the materials placed before us. It is seen from the clarification given in Board Circular No. 97/8/2007-ST., dated 23-8-2007 specifically at Para 8.3 that the Board has clarified that credit can be extended to mobile phones provided it is used in or in relation to the manufacture of the final products. The appellants have strongly submitted that the mobile phones are all standing in the name of the company and used by the employees in relation to the work only and incidentally it can be used for personal work but that by itself is no ground to deny the credit. In all the above citations, the Tribunal has accepted the assessee's proposition to extend the benefit of credit to mobile phones. The issue is no longer res integra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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