Clarification required on service tax paid Telephone bill, does it eligible for Cenvat credit ?

[RameshBabu Kari]

Clarification required on service tax paid Telephone bill, does it eligible for Cenvat credit ?

AI Summary

Eligibility of Cenvat Credit on Telephone Bills: Nexus Required with Output Service per Rule 2(l) of Cenvat Credit Rules 2004. A query was raised regarding the eligibility of Cenvat credit on service tax paid for telephone bills. Respondents agreed that Cenvat credit is possible if a nexus is established between the input service (telephone) and the taxable output service or manufacturing activities, as per Rule 2(l) of the Cenvat Credit Rules, 2004. However, it was noted that claiming such credit could lead to litigation, and it might be prudent to avoid claiming if the credit amount is minimal. A relevant case law was also cited for further reference.