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of <h1>Appellate Tribunal allows credit for service tax on telephone services for sales promotion. Remitted for reassessment.</h1> <h3>M/s AGSAR PAINTS PVT LTD Versus COMMISSIONER OF CENTRAL EXCISE, MADURAI</h3> M/s AGSAR PAINTS PVT LTD Versus COMMISSIONER OF CENTRAL EXCISE, MADURAI - 2011 (24) S.T.R. 422 (Tri. - Chennai) The Appellate Tribunal CESTAT, Chennai allowed the appeal filed against the denial of credit of service tax paid on telephone service. The Tribunal held that the telephone service was eligible as an input service used for sales promotion in connection with the business activity of manufacturing final products. The case was remitted to the adjudicating authority for requantification of duty demand and penalty in light of the allowed credit for telephone service. The appeal was allowed accordingly.
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