2009 (1) TMI 193

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..... -8-2007, the Revenue has taken superceded instructions of the Board’s earlier circular as a ground to assail the impugned orders. In terms of the Board’s clarification contained in Circular dated 23-8-2007, cases of use of phones found in the instant cases constituted input service and the service tax credit was admissible as CENVAT credit. - 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 present purpose – credit is allowed.
Shri P. Karthikeyan, Member (T) ShriN.J. Kumaresh, SDR, for the Appellant. Shri M. Kannan, Advocate, for the Respondent. [Order].- In the impugned orders, the Commi .....

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..... udgment in the case of Collector of Central Excise, Vadodara v. Dhiren Chemical Industries reported in 2002 (143) E.L.T. 19 (S.C.), the authorities in the department were bound by the instructions of the CBEC. The Commissioner (A) had wrongly held that the circular did not apply post 10-9-2004 when the CCR, 2004 was enacted. 4. The learned counsel for M/s. Brakes India Ltd. submits that vide Circular No. 97/8/2007-ST dated 23-8-2007, CBEC had clarified that its Circular No. 59/8/03-ST dated 20-6-2003 had been issued in the context of the STCR and that with effect from 10-9-2004 credit of service tax paid in respect of mobile telephones was admissible, provided the mobile phones were, used for providing output service or in or in relation t .....

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..... s, 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 this 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 be a ground germane to the provisions of the Rules relevant for the present purpose." 6. In the result, I find that the impugned orders do not call for any intervention. The appeals filed by the Revenue are dismissed. (Dictated and pronounced in open court)
Case la .....

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