Input service credit for branch office cleaning and telephone services remains admissible when factory location is not a ative test.

Input service credit is not denied merely because cleaning and telephone services were used at branch offices rather than within the factory premises. The definition of input service does not require availing the service only inside the factory, and the place of use is not decisive by itself. On that basis, credit on cleaning services and telephone services was held admissible, and the Department's challenge failed.

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Issues: Whether service tax credit on cleaning services and telephone services used at branch offices is admissible as input service credit when the Department contended that the branch offices lie beyond the place of removal.

Analysis: The denial of credit was founded on the premise that the services were availed at branch offices and not within the factory premises. The definition of input service does not require that the service must be availed only inside the factory for credit to be taken. The place where the services are availed is not, by itself, decisive for denial of credit.

Conclusion: The credit on cleaning services and telephone services was admissible, and the Department's appeal failed.

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