Cenvat credit on mobile, catering and machinery insurance services was treated as admissible; denial was held incorrect.

Cenvat credit on service tax paid for mobile services, catering services, and insurance on plant and machinery was treated as admissible on the stated reasoning. Mobile services were covered by binding Gujarat High Court precedent and Tribunal decisions, catering services were covered by a Larger Bench ruling, and insurance on plant and machinery was viewed as part of the cost base rather than a disallowable input. On that footing, the denial of Cenvat credit was stated to be incorrect, the Commissioner (Appeals) order was set aside, and the appeal was allowed.

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Issues: Whether denial of Cenvat credit on service tax paid on mobile services, catering services, and insurance on plant and machinery was sustainable.

Analysis: Credit on mobile services was treated as admissible in view of binding precedent of the Gujarat High Court and the Tribunal. Catering services were covered by the Larger Bench decision of the Tribunal. Insurance on plant and machinery was regarded as an expenditure forming part of cost, and credit on that component was not liable to be denied.

Conclusion: The denial of Cenvat credit was held to be incorrect, the order of the Commissioner (Appeals) was set aside, and the appeal was allowed.

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