CENVAT credit on mobile phone service is admissible when employee phones are owned by the assessee and used for manufacturing operations.

Service tax paid on mobile phone service was treated as eligible for CENVAT credit where the phones were owned by the assessee and supplied to employees for use in connection with business operations relating to manufacture and clearance of the final product. The cited decisions supported credit on similar facts, and the stated principle is that such service qualifies as an input service when it is used in or in relation to manufacture and clearance of goods. The assessee's claim was therefore accepted on this factual basis.

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Issues: Whether CENVAT credit of service tax paid on mobile phone service was admissible where the phones were owned by the assessee and supplied to employees for use in or in relation to manufacture and clearance of the final product.

Analysis: The phones were found to be owned by the assessee and given to employees for use in connection with business operations relating to manufacture and clearance of cement. The cited decisions accepted mobile phone service as eligible for credit on similar facts, supporting the assessee's claim.

Conclusion: CENVAT credit on mobile phone service was admissible to the assessee.

Ratio Decidendi: Where mobile phones are owned by the assessee and supplied to employees for use in or in relation to manufacture and clearance of the final product, service tax paid on mobile phone service qualifies for CENVAT credit.

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