2009 (1) TMI 192

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..... as available to the assessee paying the mobile phone bill. Their Lordships held that “the ground on which the credit was disallowed namely, the phones were not installed in the factory premises, cannot be termed to be a ground germane to the provisions of the rules relevant for the purpose. In the Indian Rayon and Industries Ltd. case, the Tribunal had held that service tax paid on mobile phones w .....

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..... of service tax would be allowed only on telephone sets installed in the business premises and that CENVAT credit was not admissible in respect of service tax paid for the use of mobile phones. Adjudicating a Show Cause Notice, alleging that M/s. ITC had contravened the provisions of Rules 3 and 4 of CENVAT Credit Rules, 2004 (CCR) by availing credit of service tax paid on phones not installed in .....

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..... ent of the appellants that the circular relied on by the original authority had been issued during the currency of CCR, 2002 which were superceded by CCR, 2004. 2. Arguing the case of the appellants, the learned counsel relies on the following case law:- (i) Commissioner of Central Excise v. Excel Crop Care Ltd., reported in 2008 (12) S.T.R 436 (Guj.). (ii) Excel Crop Care Ltd. v. .....

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..... mpany for business purpose at the residences of the executives of the assessees. The learned JDR reiterates the findings contained in the impugned order. 3. I have carefully considered the facts of the case and the submissions made by the parties. In the Excel Crop Care Ltd. case (supra), the Hon'ble High Court of Rajasthan held that service tax paid for use of mobile phones was available .....

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..... sions is to the effect that credit of service tax paid for telephone services availed through the staff of the assessees using mobile phones or landline phones at their residences is admissible as input service credit. In the circumstances, I find the impugned order inconsistent with the legal provisions and vacate the same. The appeal is allowed. (pronounced in open court) - - TaxTMI - TMI .....

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