Cenvat credit on mobile phone services upheld where company records supported business use and no evidence showed personal use.

Cenvat credit on mobile phone services was found admissible where the phones were in the company's name, the bills were paid by the company, and the department produced no contrary evidence of personal use. The mere possibility that mobile phones may be used for both personal and business purposes was held insufficient to deny credit when the record supported employee use for business purposes and no employee statements or other material disproved that claim. On those facts, the denial of credit was unsustainable.

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Issues: Whether Cenvat credit on mobile phone services was admissible where the phones were stated to be used by employees for business purposes.

Analysis: The denial of credit rested on the view that mobile phones could be used for personal as well as business purposes and that the bills, by themselves, did not establish exclusive business use. The record, however, showed that the phones stood in the company's name, the bills were paid by the company, and there was no contrary evidence from the department to disprove the appellant's assertion that the phones were provided to employees for business use. In the absence of employee statements or other material showing personal use, the appellant's claim that the phones were used in the course of business was accepted.

Conclusion: Cenvat credit on mobile phone services was admissible and the denial of credit was unsustainable.

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